More Ad-Supported Streaming? CTV CPMs Continue To Fall

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.

1 comment about "More Ad-Supported Streaming? CTV CPMs Continue To Fall".
Check to receive email when comments are posted.
  1. Ed Papazian from Media Dynamics Inc, December 7, 2023 at 8:52 a.m.

    Wayne, CTV viewership on an averge minute basis is not  the exact opposite of linear when it comes to the age of the audience. Yes, linear is older but CTV's audience is aging and currently is starting to tilt older ---though not as much as linear. Why? For one thing 60% of all TV home adults use both linear and CTV---that's a lot of duplication. Often,it's the same people.

Next story loading loading..