Google Ads added a new category for television under the “performance by device tab” that allows advertisers to run YouTube ads on connected-device television. Some advertising agencies have learned that this ad type has substantially lower CPMs.
Google’s move reduced the price of the CPM on the TV screen, said Jonathan Kagan, senior director of search and biddable media at Cogniscient Media. "I expect to see a much higher video completion rate on TV, because people won't easily be able to skip the commercial," he said. "You might see a lower rate of them going direct to websites, but it should drive lower-funnel traffic. This is the first step of reducing the cost of TV ad buying."
Indeed, the average CPM for television screens is $17.49, per Statista, but Chacka Marketing has seen the average CPM for less than $5 for connected screens through Google Ads, said Janel Laravie, founder of Chacka Marketing.
The YouTube-related ad inventory is bought through the Google Display Network.
It remains to be seen whether or not that cost will rise. “Google is looking to get more advertising dollars and higher CPMs, because that’s the key to growing revenue,” she said.
It’s an opportunity for traditional television advertisers to buy digital and spend more money with Google. “We should expect to see some level of increase,” she said, “but when you see the big brand advertisers increasingly adopting YouTube and digital through traditional and offline, it’s a way for them to tap into additional, large consumer brand dollars.”
Previously, advertisers could always manage YouTube videos by tablet, mobile phone and desktop, but now it is available on smart TV with a YouTube integration.
In mid-October, Google announced that the TV screens device type joined computers, mobile phones and tablets in Google Ads, and Display & Video 360.
This means advertisers can tailor their campaigns for connected TVs -- done by using a different creative or setting a specific device bid adjustment. Advertisers also can see reporting for ads that run on TV screens to help determine the impact of these ads within the overall mix of campaigns.