How Mattress Brands Spent $136M in Digital Advertising in H1 2022 with an Overall Average CPM of $10.00

Key Takeaways

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Mattress brands in the competitive set invested $136M into digital ads in H1 2022. 

Here’s how:

Channel Identification

• Brands allocated 26% of their total ad budget to OTT ads and 18% to Paid Search ads. 
• Twitter saw the highest increase (+5,434%) followed by Instagram ads (+12%) from Q1 to Q2 2022.
• Display ads saw the lowest average CPM at $3.1.

Advertising Trends

• From January 2022 to June 2022, the competitive set decreased advertising spending by -11%. 
• OTT had the highest advertising budget in the competitive set at $35.2M.
• Only OTT, Search, YouTube, Display Images, and Display Videos saw a decrease in spend from Q1 to Q2 2022.
• Ashley Furniture saw the highest advertising spend at $49.7M.

Ad Creatives

• Ashley Furniture aims to link the importance of building a comfortable home with the perfect pieces.
• Purple focuses on brand awareness ads that highlight the internal structure and science behind their product.
• Sleep Number creates ads linking the benefits of sleep and biometric data for users to athletic performance.
• Mattress Firm uses Snapchat to reach and help customers struggling with sleeping in or bad nights.

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The following companies were included in the competitive set for this analysis:

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From January 2022 to June 2022, companies in the competitive set decreased their digital advertising spend by -11% from Q1 to Q2. January 2022 saw the highest ad spend at $27M and March 2022 saw the lowest ad spend at $18M.

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Overall Ashley Furniture ($49.7M) invested the most advertising dollars in digital advertising in the competitive set. All brands except Mattress Firm (+19%) decreased their advertising spend in Q2 2022.

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In Q2 2022, 50% of channels saw an increase in spend including Facebook, Instagram, Snapchat, Twitter and TikTok while OTT, Search, YouTube, Display Images, and Display Videos saw a decrease in spend. Twitter and Instagram saw the highest increases at +5,434% and +12% respectively.

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From January 2022 to June 2022, the competitive set invested $136M into digital advertising. OTT and Paid Search saw the highest spending of $35M and $24M respectively, followed by Facebook ($20.7M).

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Sleep Number had the largest OTT spend ($13M) and spent the most on Paid Search ($9M). Ashley Furniture spent the most on Facebook ads at $6.5M.

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Ashley Furniture invested the most on YouTube, Display Images and Instagram ads at $10.7M, $16M and $4M respectively. Compared to other brands in the competitive set, Ashley Furniture made up 89% of the Display Image ad spend.

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Mattress Firm invested $4.6M into Snapchat ads while Sleep Number invested the most in Display Video ads ($843K). Only two companies in the competitive set ran Twitter ads — Sleep Number spent the most at $791K, followed by a small investment from Mattress Firm ($278).

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The competitive set invested only $400K to advertise on TikTok. Purple ran $250K worth of TikTok ads, followed by Mattress Firm with $125K and Ashley Furniture with $22K.

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From January 2022 to June 2022, OTT* saw a total spend of $35M and an average CPM of $26.1 across the competitive set. Other OTT Streaming Services saw the highest distribution of ad spend (6%) followed by Hulu (42%). 

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Ashley Furniture, Sleep Number, Mattress Firm and Purple spent an average of 51% of their respective budgets in OTT to advertise videos with a duration of 30-45 seconds. The top 10 ads for OTT in the competitive set focused on end-of-funnel conversion messaging such as sales and promotions. 

When it comes to brand awareness, Purple invested $676K into an ad that uses visuals and text on screen to help explain the science behind their mattresses. Purple starts the ad with a digital representation of their mattress and a voice-over saying “What am I looking at here?”. Sleep Number invested $536K into a 30-second ad that highlights the technology of their mattress to help users track biometrics digitally, the ad uses people speaking to the camera about their sleep habits and pain-points. 

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Sleep Number spent the most advertising dollars on Paid Search in the competitive set, at $9M. Ashley Furniture generated the highest amount of paid search traffic at 3.2M.

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Brands in the competitive set generated an average CPC of $3.33. Top ads from Mattress Firm and Purple demonstrate priority on branded keywords advertising store locators and mattress collections respectively.

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From January 2022 to June 2022, Facebook saw a total spend of $21M and an average CPM of $8.2 across the competitive set. Ashley Furniture saw the highest investment at $6.5M. Link posts were the most popular ad format with 43% of the ad spend.

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Purple spent $452K and $372K on two ads with the same copy but different creative. The ad with a higher spend featured a simple graphic. Purple used the description area to inform prospects while incentivising visits with an offer for free sheets and pillows. In the third ad ($217K) Purple highlights a free shipping policy with a 100 day return window.

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The competitive set invested $19M in YouTube ads between January 2022 and June 2022, with Ashley Furniture spending the most at $10.7M. Ad creative between 15-29 seconds in length saw the highest ad spend allocation at $15M.

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Brands in the competitive set saw an average YouTube CPM of $16.8.

Sleep Number invested $913K and $865K into two 6 second ads that follow similar scripts but are tailored to different audiences. The first ad advertises the idea of sleeping at a custom temperature suited to the viewer while the second ad shows a chaotic household with children and reminds the viewer how important getting a good night sleep is. Both ads use the same outro tile with the slogan “Proven Quality Sleep is Life-Changing Sleep”.

Spend: $913K | Impressions: 51M | CPM: $18.1

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Spend: $865K | Impressions: 48M | CPM: $18.1

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The competitive set invested $18M into Display Image ads with an average CPM of $3.1, the lowest average CPM amongst the advertising channels. Ashley Furniture saw the highest investment of $16M, which is 89% of the total competitive set spend. 

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Brands in the competitive set primarily ran display ads on desktop devices (65%), investing 24% of the total Display Image ad budget on answers.com followed by zap2it.com (23%).

Ashley Furniture saw the highest spends on Display ads with conceptual messages about finding a deeper sleep ($296K), being comfortable at home where customers now tend to not only sleep and relax but also work and play ($114K) and a reminder to prepare your home for the summer ($87K).

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Ashley Furniture invested $4M in Instagram ads, which is 36% of the total competitive set spend. The brands in the competitive set mainly ran story post ads (53%), targeting mostly the Tampa Bay Area (8%) and Atlanta (7%).

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Instagram ads had an average CPM of $7.9. Both of Purple’s top ads focused on Purple mattress’ benefits and technology, using emojis to convey branding. Ashley Furniture’s top Instagram ad featured a contest for a $3K Ashley shopping spree and tickets to see Ne-Yo live. 

*Ads shared on Facebook & Instagram only offer Facebook demonstration of ad. **Ad not available for viewing.

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Mattress Firm invested $4.6M between January 2022 and June 2022, which is 82% of the total competitive set spend for Snapchat. 8% of the budget went towards Chicago, followed by Minneapolis (5%).

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Mattress Firm’s top four ad copies on Snapchat include simple titles that are catchy and geared towards Snapchat’s younger demographic. The top snapchat ad of $422K uses the copy “Sleeping in? We’ve got you covered” as a way to connect with viewers who are struggling with waking up in the morning. 

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Sleep Number invested $844K between January 2022 and June 2022 to run Display Video ads on websites. 59% of the spend focused on distribution through yahoo.com. 

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Display Videos saw an average CPM of $13.7. The top brand awareness Video ad ($276K) features Sleep Number’s mattress quality for active couples, demonstrating how important a good night sleep is to athletic performance. Sleep Number’s top awareness video ad ($40K) features Cowboys’ Quarterback Dak Prescott and his sleep biometrics demonstrating how Sleep Number has led to improved sleep and in turn improved football performance.

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Sleep Number invested $791K between January 2022 and June 2022, which is 99% of the total competitive set spend. The brands in the competitive set mainly ran link ads (98%) on Twitter.

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Sleep Number spent $774K on a simple Twitter ad with an image carousel and link to a collection information page with a bed quiz making up 98% of their Twitter budget. The ad features the promise and result of achieving better sleep with a branded hashtag #SmarterSleep.

Spend: $774K  Impressions: 131M CPM: $5.9

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Purple invested $250K between January 2022 and June 2022, which is 63% of the total competitive set spend for TikTok ads. Purple targeted Los Angeles (7%) the most followed by New York (6%).

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Three brands in the competitive set ran $400K worth of TikTok ads from January 2022 to June 2022 generating an average CPM of $10.Purple saw the highest ad spend investment in TikTok at $250K.

The top four ad copies on TikTok typically include 2-3 short sentences that ask a question or speak directly to the viewer about how their product solves a pain-point. 

Purple spent $50K on an ad that demonstrates the perfect comfort their mattresses achieve by being not too firm and soft or hot and cold.

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Spend is a directional approximation and does not include retargeting, or behavioural targeting.