Your client is launching a new brand of sunblock which is due to be on shelf in Coles by early January, how will this timing affect your planning CPM?

Your client is launching a new brand of sunblock which is due to be on shelf in Coles by early January, how will this timing affect your planning CPM?

• A. Your planning CPM will be lower than average.
• B. The ratecard is at its cheapest level.
• C. Your planning CPM will increase.
• D. As it will be high demand, your CPM will increase.

Answer: (A)

The timing tests how seasonality pushes the price you pay to reach audiences. CPM is driven by competition for ad space—when many advertisers are buying, prices rise; when demand eases, inventory becomes cheaper. After the holiday period, overall ad demand often softens, so the available inventory is higher relative to demand, which tends to push planning CPM below the yearly average. Launching a sunblock line in January aligns with the sunny season, but the media market around that time can still be lighter, yielding a lower CPM than average. In contrast, if demand were high (for example, ahead of holidays or major events), CPM would rise, and fixed rate cards don’t guarantee the cheapest rate—the actual CPM reflects current demand and inventory.

The timing tests how seasonality pushes the price you pay to reach audiences. CPM is driven by competition for ad space—when many advertisers are buying, prices rise; when demand eases, inventory becomes cheaper. After the holiday period, overall ad demand often softens, so the available inventory is higher relative to demand, which tends to push planning CPM below the yearly average. Launching a sunblock line in January aligns with the sunny season, but the media market around that time can still be lighter, yielding a lower CPM than average. In contrast, if demand were high (for example, ahead of holidays or major events), CPM would rise, and fixed rate cards don’t guarantee the cheapest rate—the actual CPM reflects current demand and inventory.