Several forces are driving up costs per thousand on both linear and connected TV. On the linear side, audience levels have dropped at a faster rate than ad spending, so more dollars are chasing fewer viewers.

Disney+ CPMs have exceeded Hulu’s for some programs, and NBCUniversal said it’s nearly sold out its inventory at increases “in the high single digits.”. See our report: For more info on how much advertisers will spend during the upfronts, check out Upfront TV and Digital Video 2022: A Return to Normalcy for a $20 Billion Market.

A relative scarcity of CTV inventory, along with the richness of audience insights from the format, has resulted in higher CPMs than for linear. Standard Media Index (SMI) estimated that in Q3 2021, OTT CPMs were 28% above those of linear TV in the US. These price increases in TV and CTV advertising are compounded by two key factors:. Inflation.

Facebook CPMs—the cost per thousand impressions—have increased significantly over the past year as digital ad spending has resurged and advertisers have flocked to the platform, driving more competition into programmatic auctions.

Domino effect: Warner’s strategy could affect the CPMs other media giants ask for. Disney+ is seeking premium pricing for its inventory as it launches an ad-supported tier. Buyers have indicated the “House of Mouse” is looking for a CPM of $50, exceeding streamers such as Hulu.

Buyers said the company was seeking CPM (cost per 1,000 viewers) price increases of at least 15% to 25% with little wiggle room. Discovery offered “premiere” ad slot packages at higher CPMs before the merger, but Warner is cranking those prices up too, now that they include a wider variety of networks and services. That’s driven up CPM prices overall.

Snapchat, TikTok, and Pinterest ads are all considerably cheaper on a CPM basis, per Tinuiti.

Improve execution: Advertisers will be pushed to extract more value from publishers, which will include heightened scrutiny of metrics like ROAS and CPM. Why it matters: The Cox memo suggests Meta will be focusing on what works, like a new Instagram feature that automatically converts video uploads into Reels, and less so on long-term projects, like its metaverse ambitions.

Libsyn’s AdvertiseCast reported CPMs for 30-second ads averaged $18, while 60-second ads averaged $25. Programmatic podcast CPMs ran between $12 to $15, which is about half of what baked-in ads sold for, per AdvertiseCast. These prices place podcast ads slightly below CTV ad prices but above most other digital media formats, where CPMs can run under $1.

From a browser perspective, costs per thousand (CPMs) on Chrome are higher than on Safari and Firefox. According to data from Amobee, the average Chrome CPM in November 2021 was $6.91—about 11% higher than the average Safari CPM during that time, and roughly 29% higher than the average Firefox CPM.

Meta, for all its flaws, still has a user base that numbers in the billions, though advertisers may look elsewhere due to its relatively high CPMs compared to other platforms.

Costs per thousand (CPMs) for streaming services owned by TV networks are around $25 to $35, according to Glewed TV. Streaming live sports CPMs are over $40, per Glewed TV. Different services can also charge different rates. HBO Max CPMs ran between $45 to $55, according to ad buyers who spoke with Business Insider. Discovery+ CPMs were $20 to $25. Hulu CPMs were $23 to $30.

Social media advertising will remain vulnerable in Q2 and possibly longer. CPMs will stay low, spending cuts will persist, and ad creative will be tricky to get right.

On today's episode, we discuss Twitter's major initiatives and figure out what the platform will look like after it reinvents itself. We then talk about Facebook's cost-per-thousand (CPM) recovery, TikTok's ecommerce efforts, and a recent study about COVID-19 news on Facebook. Tune in to the discussion with eMarketer senior analyst at Insider Intelligence Jasmine Enberg.

Mass reach, lower costs per thousand (CPMs), and an audience of verified humans? That sounds exactly like what advertisers are searching for in premium digital environments. A digital, outcome-centric approach to TV advertising is possible, and it represents the logical path forward for today’s growth marketers.

CPMs—the cost of a thousand impressions—on core Facebook grew a whopping 66% from Q4 2020 to Q4 2021, even as impressions decreased 22% over the same period, according to data provided by performance marketing agency Tinuiti. Apple itself is a beneficiary.

However, most CTV CPMs are closer to the podcast ad prices produced by AdvertiseCast, which is much more expensive than for digital display. Marketing agency Topdraw estimated display ad CPMs run between $0.50 and $4 and most social media ads CPMs between $6 and $10. Identifying Potential Disruptors.

When US advertisers pulled back spending dramatically in March, one of the earliest noticeable effects on the display ad market was falling CPMs. At the same time as marketers were lowering their demand for ads—either to take spending cuts as savings or merely pause and rework their messaging—consumers were spending more time on social and traditional media properties, increasing the supply of impressions. A decline in prices was the natural outcome.

On the other hand, the players that tested and learned gained important benefits and, in some cases, increased effective cost per thousand impressions (eCPM) rates on Safari and Firefox by 80%. Key learnings: There’s really no time to lose for either the buy or the sell side.