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Navigating Q1: How Snack Media Help Publishers Offset Declining CPMs


georgemcgibbon - 16th January 2025 - 0 comments

As the festive buzz subsides and the calendar flips to a new year, many sports publishers face a recurring challenge: a noticeable dip in CPMs during the first quarter. This trend is not exclusive to sports publishing; it’s a broader phenomenon across digital media. However, given the unique dynamics of the sports calendar and the advertising market, Q1 poses specific challenges for sports publishers.

Understanding why CPMs dip and, more importantly, how to mitigate the impact is crucial for publishers aiming to maintain revenue streams. At Snack Media, we’ve seen firsthand what works—and we’re already implementing these solutions for our partners.

As part of this commitment, we’re excited to have rolled out our new header-bidding wrapper this January, an innovative solution designed to maximise page yield from existing inventory. This advanced tool improves viewability, optimises the utilisation of ad sizes, reduces load times, and enhances ad unit delivery. These upgrades will ultimately empower our publishers to achieve higher CPMs and boost overall revenue.

Here’s a breakdown of why CPMs tend to drop in Q1 and how Snack Media supports our publishers through these challenges:

Why Do CPMs Drop in Q1?

  1. Seasonal Budget Resets: At the start of a new fiscal year, many advertisers recalibrate their budgets. This period often focuses on strategic planning and reallocating resources, leading to a temporary lull in ad spending. As competition in the ad market reduces, CPMs naturally drop.
  2. Post-Holiday Slowdown: Q4 sees a surge in advertising, driven by peak consumer spending during the festive period. By comparison, Q1 is quieter, as advertisers transition from short-term holiday campaigns to longer-term brand-building initiatives. This shift results in a dip in demand, impacting CPMs across the board.
  3. Fewer Market-Defining Events: Q4 is rich in high-profile events such as Thanksgiving, Black Friday, Cyber Monday, and last year’s US election, which drive significant advertiser activity. For sports publishers, while Q1 starts strong with events like the NFL playoffs, Super Bowl, and January transfer window, the rest of the quarter tends to be quieter. Regular-season games and smaller tournaments don’t command the same advertiser interest as playoffs, finals, or transfer windows, leading to fewer opportunities for premium ad campaigns. This creates a demand gap that drives down CPMs for much of the quarter.
  4. Market Saturation: Following the intense demand of Q4, ad inventory often exceeds advertiser demand in Q1. This surplus exerts downward pressure on CPMs, especially for publishers heavily reliant on programmatic revenue.

How Snack Media Can Help Mitigate the Impact for Publishers

Snack Media employ a comprehensive, multi-faceted approach to ensure publishers continue to thrive despite seasonal challenges:

1. Leveraging the Sports Calendar

Sports content benefits from year-round engagement, even during quieter ad periods. At Snack Media, we can:

  • Highlight Key Events: Capitalise on trending sports content, such as the NFL playoffs, Super Bowl, and European football’s transfer window.
  • Tailor Ad Packages: Our in-house sales team develop event-specific, as well as season-long, PMP deals and premium direct campaigns tied to major sporting events, ensuring publishers maximise revenue during these spikes.

2. Rolling Out Advanced Technology

Our new header-bidding wrapper is a real game-changer for our publishers. By improving inventory performance, enhancing viewability, optimising ad sizes, and reducing load times, it enables publishers to achieve higher CPMs without lifting a finger.

3. Diversifying Revenue Streams

Snack Media can help reduce publishers’ reliance on open-market programmatic with innovative revenue streams, such as:

  • First-Party Data Solutions: Unlock higher CPMs through audience segmentation and data-driven targeting.
  • Sponsored Editorials: Collaborate with advertisers to create branded content tailored to sports audiences, driving both engagement and revenue.
  • Social Monetisation: Generate income through social platforms by leveraging Snack Media’s expertise in turning social traffic into revenue.
  • Ad Block Recovery: Recover impressions lost to ad blockers, ensuring no revenue opportunities are missed.

4. Optimising Inventory

Snack Media can ensure publishers’ inventory is primed for maximum efficiency and revenue generation by:

  • Improving Viewability: Optimising ad placements to increase visibility, as higher viewability often correlates with better CPMs.
  • Strategic Floor Prices: Working with publishers to find the right balance between competitiveness and revenue potential.
  • Vendor Optimisation: Ensuring all programmatic connections operate efficiently to maximise fill rates and earnings.

5. Harnessing First-Party Data

With privacy regulations tightening, first-party data is more valuable than ever. Snack Media can help publishers unlock their potential by:

  • Building Audience Segments: Create compelling audience profiles that attract premium advertisers.
  • Using Leading Platforms: Tools like LiveRamp and Audigent empower publishers to enrich their data and differentiate their inventory. For example, LiveRamp specialises in helping publishers connect offline and online data to create highly actionable insights, while Audigent focuses on audience segmentation and data monetisation to deliver better results for advertisers.
  • Logged-In Users: Publishers with logged-in audiences can maximise their data opportunities.

6. Rolling Out Premium Ad Formats

High-impact ad formats offer publishers valuable revenue opportunities while enhancing their inventory’s appeal, with Q1 representing a perfect opportunity to test out new formats ahead of the higher-spend quarters later in the year.

At Snack Media, we balance high CPM potential with a focus on user experience (UX). Here’s a quick overview of each format and how we ensure it delivers both for publishers:

  • Video Ads: Video ads generate higher CPMs due to their rich, engaging format. They allow advertisers to tell a compelling story with sight, sound, and motion, making them ideal for sports content like highlights and recaps. We optimise placements to ensure video ads integrate smoothly, preserving the user experience while boosting revenue.
  • Exit-Intent Ads: Exit-intent ads appear when a user is about to leave the site, offering a last chance to engage them. While these ads drive high CPMs, we ensure they’re displayed only when appropriate and using non-intrusive designs. This way, we recover potential revenue without interrupting the browsing experience for engaged users.
  • Skins and Interstitials: Skins and interstitials deliver high CPMs by offering full-page visibility. We help publishers integrate these formats seamlessly, ensuring they complement the site’s design and are frequency-capped to avoid user frustration. When used carefully, these formats create a premium experience while boosting revenue.
  • Interscrollers: Interscrollers are full-screen ads that appear as users scroll through content. They’re particularly effective for mobile, where visibility and engagement are key. We ensure these ads blend into the scrolling experience without disrupting the flow, allowing publishers to monetise mobile traffic effectively.

Partnering for Success in 2025

Snack Media is dedicated to helping publishers navigate the highs and lows of the ad market. With a combination of programmatic expertise, premium direct campaigns, and cutting-edge technology, we ensure publishers thrive even during seasonal challenges like Q1.

If you’re ready to better monetise your content and unlock its full potential, contact Snack Media today. Let us help you turn seasonal challenges into long-term growth opportunities.

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