Cost Per Thousand Will Break $1000M in the Near Future
Analysis of rising advertising costs and implications for investor-backed growth companies
The Advertising Cost Escalation
Digital advertising costs have been on an relentless upward trajectory. CPM rates across major platforms have increased 30-50% year over year, creating significant challenges for growth-stage companies dependent on paid acquisition. Family offices must factor these trends into deal evaluation.
Impact on Deal Flow Scoring
Rising customer acquisition costs directly impact unit economics and scalability projections. Our Deal Flow Scoring Algorithm incorporates real-time advertising cost data to pressure-test growth projections and identify deals with sustainable acquisition strategies.
The High-Intent Alternative
Companies leveraging high-intent targeting technology achieve dramatically lower acquisition costs. Our proprietary high-intent network demonstrates that precision targeting can reduce CPA by 40-60% compared to broad-reach campaigns. This is a key differentiator we evaluate in every deal.
Investment Implications
Family offices should prioritize investments in companies with diversified acquisition channels, strong organic growth engines, and proprietary data advantages. Deals overly dependent on paid acquisition at current CPM rates face increasing margin pressure that may not be reflected in pitch deck projections.