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.