It’s a given that marketers are interested in uncovering ways to smartly invest national linear TV ad spend to compensate for price inflation, although 2020 CPMs have dramatically declined. According Philip Inghelbrecht, CEO and co-founder of TV ad agency Tatari, there was about a 40% drop in CPMs among the networks it bought inventory from.

With connected TV adoption rising, advertisers are keen to access an increasingly sizable audience on a sizable screen. In fact, many connected TV ad buyers may pay north of $20 CPMs to do so, according to a new digital ad pricing statpack that eMarketer will be releasing April 10.

MM: Higher cost per thousand (CPMs) mean bad actors can get more bang for their buck within the CTV ecosystem. And the technical challenges inherent to CTV mean there are fewer things fraudsters have to “get right” to earn as many dollars as they can. EF: CTV fraud is easier. It’s easy to grow and monetize low-quality apps using fake traffic at higher CPMs.

Following is a hypothetical example, which demonstrates that the advanced target CPM value is more cost-effective than a standard age/gender transaction, but it may be less efficient than an addressable buy for SUV prospects:. Standard age/gender buy: $125.50 CPM. Advanced target buy: $72.25 CPM. Addressable target buy: $42.50 CPM.

Media Dynamics estimated that the average CPM for US primetime TV ads shown on broadcast stations that were sold during the Upfronts increased 13.2% to $36.19 during the 2019-2020 season. Cable CPMs increased 11.1% to $19.45 this year. Since 2016, broadcast and cable CPMs have increased by at least 8.0% per year.

These ads include both linear and video-on-demand (VOD) delivered in this way, but exclude connected TV, smart TV and OTT ads. While we expect addressable TV ad selling to grow, we have reduced our US addressable TV ad spending forecast for 2019, from $2.54 billion to $2.00 billion.

Programmatic connected TV CPMs dropped 41.6% in the latter half of March vs. the beginning of the month, according to Adomik, a tech firm used by publishers to track ad monetization.

As supply levels rise, connected TV CPMs should decline. Already, some sources interviewed for our "Digital Display Ad Pricing StatPack" said they are seeing a slight drop in pricing. According to three US buy-side sources who anonymously shared data with us, CPMs for in-stream ads on connected TV ranged from $19.84 to $28.33 between Q4 2017 and Q4 2018.

In a March 2019 IAB and Advertiser Perceptions poll, a third of US marketers said that cost was an obstacle preventing them from investing more in OTT ads, which includes CTV ads. This made cost the most commonly cited obstacle in the study. (CTV is a subset of OTT, which means that not all OTT ads are CTV ads, but there is considerable overlap.). As supply levels rise, CTV CPMs should decline some.

CPMs fell back down to normal post-election, with the next jump coming in at 30% the week before Thanksgiving. Political Ad Dollars Shift Toward Connected TV and OTT. There’s no doubt that CTV and OTT were the big trends for political advertising in 2020.

OTT and Connected TV. Ad spend on OTT last year surpassed Magna’s expectations. In September 2018, Magna forecast that $2 billion would be spent on OTT ads in the US. But in April, the figures were revised to show US OTT ad spend grew 54% year over year to $2.7 billion. Under Magna’s adjusted forecast, US advertisers will spend $3.8 billion on OTT this year and $5 billion by 2020.

How to capitalize on the increase of viewers flocking to CTV and the decrease in CPMs. How to fill the void of live sports and events now that they’re on hold. PRESENTERS. Max Knight is vice president of analytics services at Amobee. Max built and leads the analytics team.

For one, much of the additional time spent on premium OTT content was on ad-free subscription services, such as Netflix or Disney+. The second is that mobile also had to compete with CTV, which saw steep increases in viewing. “We've definitely seen growth in CTV video as a format,” Tremor Video’s Rayes said.

Charles Cantu, founder and CEO of ad tech company Reset Digital, said the biggest issue with CTV advertising is that “people have been hoodwinked for so long thinking they can get cheaper CPMs,” which leads advertisers to end up wasting money on fraudulent inventory.

Less ad effectiveness and lower CPMs: In H1 2020, Facebook ran a test among a group of app install ads in Audience Network. It found that personalized ranking generated 100% more revenues than nonpersonalized ranking. A more general drop in personalized advertising will likely lead to significant drop in CPMs.

Charles Cantu, CEO of ad tech company Reset Digital, said the biggest issue with CTV advertising is that “people have been hoodwinked for so long thinking they can get cheaper CPMs,” which leads advertisers to end up wasting money on fraudulent inventory.

Marketer Takeaway: Facebook’s political ad whack-a-mole game has accelerated the shift in political ad spending to other platforms, including over-the-top (OTT), connected TV (CTV), and Snapchat. While we don’t expect a significant pullback from those alternative channels, political advertisers are likely to return to Facebook, potentially resulting in limited inventory and higher CPMs.

In general, YouTube is second only to Netflix in terms of share of time spent with OTT video in the US. That’s particularly notable given that YouTube is among the only major streaming video platforms that’s almost entirely ad-supported. Impact of the Pandemic on US YouTube Viewing. Like other OTT platforms, YouTube also benefited from the surge in streaming video consumption amid the pandemic.