• by Wayne Friedman , December 6, 2023

As consumers are confronted with more ad-supported streaming premium service options as well as more modest FAST networks, cost-per-thousand viewer prices (CPMs) continue to drop, according to Insider Intelligence/eMarketer.

The cost per thousand viewers dropped by 60% in the current fourth-quarter period to $21.73 versus $35.06 in the year-ago fourth-quarter period.

Supply-and-demand factors are at work here -- including heavyweights Netflix and Disney+ starting up ad-supported options a year ago, poised to grow quickly.

“As more ad-supported streaming services enter the scene, inventory will be easier to come by,” says  Insider Intelligence/eMarketer. 

Still the report says that although “pricing is normalizing, CTV inventory is still scarce.”

Overall CTV ad growth will still climb -- growing 22% to $30.10 billion next year (up from $24.60 billion in 2023), then rising 14% higher to $34.30 billion in 2025.

The report says the audience segment for CTV platforms will continue to look much younger than traditional TV. September estimates indicated that 84% of millennials were regular CTV users, with 52.1% who were baby boomers. This is virtually the reverse that of linear TV -- 83% baby boomers, 60.5% millennials.

The research also estimates that 79% of all younger Gen Z consumers will be CTV watchers in 2024.

Still, analysts here say even though a quarter of all digital media time has been spent with CTV, “less than 10% of all U.S. digital ad dollars flow into CTV.” Mobile continues to dominate -- 65.5% of all U.S. digital ad dollars, 25.4% going to desktop and laptop.