Connected TV CPMs, Advertising Rise

Connected TV CPMs -- the cost per thousand viewers -- has registered recent growth. But that could soften in the coming periods with more inventory.

According to eMarketer, CPMs for in-stream commercials on connected TV were priced between $19.84 to $28.33 during a one-year span — the fourth quarter of 2017 through the fourth quarter of 2018.

Around the same time -- the period from 2016 to 2018 -- Innovid says total ad impressions served through its platform on connected TVs jumped from 13% to to 27%. Connected TV impressions, as a share of digital video ad impressions, rose to 44% in fourth-quarter 2018 from 15% during the same period a year before.

eMarketer concludes that for future connected TV pricing, “as supply levels rise, connected TV CPMs should decline.”

Connected TV advertising has seen growth from smart TVs, set-top boxes such as Roku or Google Chromecast, game consoles or other devices. Per eMarketer, 57.2% of the U.S. population will use connected TV in 2019 -- up from 51.7% in 2017.

Citing Nielsen data, eMarketer says the average amount of time spent on connected TV devices increased by five minutes a day to 40 minutes between the fourth quarter of 2017 and first quarter of 2018.



1 comment about "Connected TV CPMs, Advertising Rise".
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  1. Ed Papazian from Media Dynamics Inc, April 23, 2019 at 12:51 p.m.

    At present, connected TV CPMs are averaging about 50% higher than traditional TV CPMs and that, in theory, is based on superior targeting attained vis connected TV buys. It will be interesting to see what develops as more connected GRPs become available, especially if the supply of traditional GRPs continues to shrink.

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