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

Advertising
Content & Messaging
August 26, 2022
Furniture & Home Goods

Key Takeaways

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.

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

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.

*Ad spend includes Facebook, Instagram, Twitter, Display, Display Video, YouTube, TikTok, Snapchat, OTT and Search.

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.

*Ad spend includes Facebook, Instagram, Twitter, Display, YouTube, TikTok, Snapchat, OTT and Search.

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.

*Ad spend includes Facebook, Instagram, Twitter, Display, YouTube, TikTok, Snapchat, OTT and Search.

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).

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.

Only top 4 out of 5 brand spends demonstrated in legend.Spend is a directional approximation and does not include retargeting, or behavioural targeting.

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.

Only top 4 out of 5 brand spends demonstrated in legend.Spend is a directional approximation and does not include retargeting, or behavioural targeting.

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 adsSleep Number spent the most at $791K, followed by a small investment from Mattress Firm ($278).

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.

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%). 

*An over-the-top (OTT) media service is a media service offered directly to viewers via the Internet. OTT bypasses cable, broadcast, and satellite television platforms.

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. 

Spend: $676K | Impressions: 28M | CPM: $24.0 | Click to watch

Spend: $676K | Impressions: 28M | CPM: $24.0Click to watch

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.

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.

Landing page 1 | Landing page 2

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.

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.

Spend: $452K | Impressions: 53M  CPM: $8.54 | Click to view
Spend: $372K | Impressions: 44M  CPM: $8.54 | Click to view

Spend: $217K | Impressions: 25M  CPM: $8.54 | Click to view

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.

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

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

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. 

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).

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%).

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. 

Spend: $168K  Impressions: 20MCPM: $8.4 | Click to view*
Spend: $152K |Impressions: 18MCPM: $8.4**
Spend: $78K |Impressions: 9MCPM: $8.4 | Click to view

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

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%).

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. 

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. 

based on Sleep Number targeting

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.

Spend: $276K | Impressions: 80M | CPM: $3.4 | Click to watch

Spend: $40K | Impressions: 2M | CPM: $20.0 | Click to watch

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.

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

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%).

based on Purple targeting

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.

Currently only TikTok ad copy is available.

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

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