TikTok CPMs Dropped During US Ban Extension

Published: April 3, 2025

As acquisition talk gets louder and more frequent in the days leading up to April 5, when the extension on TikTok’s U.S. ban is set to expire, new data illustrates a period of uncertainty for the popular app.

Figures from Varos, a benchmarking firm that tracks digital ad spend, show TikTok’s U.S. cost-per-thousand-impressions (CPMs) have seen double-digital declines throughout 2025. Meanwhile, rates for Meta’s short-form video offerings on Facebook and Instagram have moved in the opposite direction.

“It’s undeniable that Facebook and Instagram have made CPM growth a key initiative, driven both by increases in spend and rates,” said Jason Krebs, general manager of media at Varos.

Toni Box, evp of brand experience at Assembly, a Stagwell media agency, noted advertisers are shifting budgets toward platforms such as Meta, YouTube, and Pinterest, which provide consistent performance and lower risk in today’s uncertain economy.

“Brands that swiftly resumed advertising on TikTok post-ban are staying the course, but many remain hesitant, keeping media spend lower despite months of attractive incentives,” Box said.

During the first quarter of 2025, U.S. ad spend on TikTok declined among eight of the top 10 advertiser categories on the app compared to the same time in 2024, according to market intelligence firm Sensor Tower. Some of that money went to Instagram and Facebook instead.

TikTok also experienced a slight bump in Americans abandoning the app in January 2025, when the social media platform briefly went dark following its initial ban. The percentage of U.S. adults who said they didn’t open the platform that month climbed to 55%, up from 52% in December, according to survey results from data intelligence firm Morning Consult.

During the same time, people who reported using the app several times per day dropped about one point.

Both user frequencies have since returned to pre-ban levels.

“No one’s acting like TikTok is gone—but no one’s pretending it’s business as usual, either,” said Raul Rios, head of strategy at independent creative agency Saylor, who explained advertisers are making plans to both diversify and stay connected to TikTok audiences if the platform disappears or undergoes major changes.

The latest forecast from market research firm Emarketer puts TikTok’s U.S. ad revenue for 2025 at $14.8 billion. The figure is below Facebook’s estimated $36.9 billion but above YouTube’s anticipated $9.9 billion.

Jonathan Gudai, CEO of programmatic advertising firm AdOmni, noted that if TikTok can keep getting large numbers of people to spend time on the app and maintain its proprietary algorithm for offering relevant and personal content, it’s poised to continue its dominance in digital advertising.

“As long as TikTok has these two key advantages, it remains one of the most valuable platforms for reaching consumers,” he said.

Written By: Paul Hiebert

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