Insights
May 30, 2025
What is the average CTV CPM? (Q1 2025)
Table of Contents
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$25-35
Typical CTV CPM range for small business advertisers
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$30B
U.S. CTV ad spend projected for 2025
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95%
Average CTV ad completion rate (vs 65-70% traditional)
The average CPM (cost per thousand impressions) for CTV advertising ranges from $20 to $40, with most campaigns falling around $25 CPM, according to industry analysis from AI Digital. This positions CTV advertising between traditional broadcast television (higher CPMs) and digital display advertising (lower CPMs), making it an attractive middle ground for advertisers seeking TV-quality placements with digital-level targeting capabilities.
Understanding CTV CPM is essential for any business considering streaming TV advertising. Unlike traditional television, where you pay for time slots regardless of who watches, CTV advertising operates on a performance-based model where you pay for actual impressions delivered to targeted audiences. This fundamental shift in pricing mechanics changes how businesses should think about TV advertising budgets and expected returns.
For small businesses that have historically been priced out of television advertising, CTV's CPM-based pricing model creates new opportunities. With platforms like Adwave offering minimum budgets as low as $50 and average CPMs around $25, a small business can reach several thousand targeted viewers for less than the cost of a single direct mail campaign.
What the data shows
CTV CPM rates vary significantly based on platform, targeting specificity, ad format, and market conditions. Here's a comprehensive breakdown of current CPM benchmarks across the CTV ecosystem.
CPM by platform (2025 benchmarks)
According to Simulmedia's TV advertising cost guide, here's what advertisers are paying across major streaming platforms:
Netflix: $20-30 CPM (programmatic), $45-65 CPM (direct buys)
Hulu: $10-30 CPM depending on targeting and inventory type
Amazon Prime Video: $25-60 CPM based on targeting specificity
Peacock: $15-35 CPM for programmatic inventory
Paramount+: Starting around $7 CPM base, increasing with targeting
YouTube (CTV): $20-25 CPM for television screen placements
Roku: $20-35 CPM through the Roku Channel
Tubi/Pluto (FAST): $15-25 CPM for free ad-supported tiers
Keynes Digital's analysis found that the median CPM for CTV ads falls between $20-35, with premium inventory and advanced targeting pushing rates higher. This compares to broadcast/cable linear television at $10-15 CPM, though linear TV typically requires much higher minimum commitments.
CPM by targeting type
The level of targeting precision directly impacts CPM rates:
Broad targeting (lowest CPM)
Run-of-network placement: $15-25 CPM
Basic demographic targeting: $20-30 CPM
Geographic (DMA-level): $20-30 CPM
Standard targeting (mid-range CPM)
Behavioral/interest targeting: $25-40 CPM
Contextual targeting: $25-35 CPM
Multiple demographic layers: $30-45 CPM
Advanced targeting (premium CPM)
First-party data matching: $35-50 CPM
Lookalike audiences: $30-45 CPM
Purchase intent signals: $40-60 CPM
Retargeting/remarketing: $35-55 CPM
Paramount's advertising insights confirm this pattern, noting that campaigns starting at around $7 CPM typically increase as advertisers apply more refined targeting parameters.
CPM trends over time
The CTV advertising market is experiencing significant CPM dynamics:
2023-2024: Premium CPMs as demand exceeded supply
Average CPMs: $35-50 for premium inventory
Limited ad-supported streaming inventory
Strong advertiser demand
2024-2025: CPM compression as supply expands
According to Marketing Architects, CTV faces an "inventory glut" driving CPMs lower
Netflix, Disney+, and Amazon Prime Video launched ad tiers
More FAST (Free Ad-Supported Streaming TV) inventory available
Average CPMs trending toward $25-35
Projected 2025-2026: Stabilization with premium segmentation
Base CPMs settling around $20-25
Premium targeting and placement commanding $40-60
Greater differentiation between inventory quality levels
This supply expansion is good news for small business advertisers, as increasing inventory availability puts downward pressure on CPMs while maintaining access to premium streaming audiences.
Breaking down the numbers
Understanding what drives CTV CPM helps you optimize your advertising investment and set realistic expectations for campaign performance.
Factors that increase CPM
Time of year (seasonality) Q4 (October-December) typically sees CPMs increase 20-40% due to holiday advertising competition. Political advertising years see additional spikes in swing-state markets. January often offers the lowest CPMs as advertisers pause after holiday spending.
Day and time targeting Prime time (7 PM - 11 PM) commands premium CPMs, often 30-50% higher than daytime inventory. Restricting to specific dayparts reduces available inventory and increases cost per impression.
Device specificity Targeting only smart TVs (excluding mobile and desktop streaming) typically increases CPM by 15-25% because TV screen inventory is more limited and more valuable.
Content genre targeting Advertising on specific content categories (sports, news, premium drama) typically costs 20-40% more than run-of-network placements due to limited inventory and higher engagement.
Audience exclusivity First-party data segments, custom audiences, and competitive conquesting all command premium CPMs because they represent specific, valuable viewer pools.
Factors that decrease CPM
Flexible timing Allowing campaigns to run across all dayparts and days of week provides access to lower-cost inventory that advertisers with time restrictions can't utilize.
Broader targeting Geographic targeting at the national or regional level (vs. hyper-local) opens more inventory and reduces CPM. Similarly, broader demographic targeting reduces competition for limited audience segments.
Longer campaign flights Committing to multi-week or multi-month campaigns often earns CPM discounts of 10-20% compared to short burst campaigns.
Off-peak timing Running campaigns in Q1 (January-March) or outside major advertising events can reduce CPMs by 15-25% compared to peak seasons.
Programmatic buying Programmatic platforms often access inventory at lower CPMs than direct buys, though premium inventory may require direct relationships.
The math: What CPM means for your budget
Understanding CPM helps translate advertising costs into real numbers:
At $25 CPM (Adwave average)
$50 budget = 2,000 impressions
$100 budget = 4,000 impressions
$500 budget = 20,000 impressions
$1,000 budget = 40,000 impressions
At $35 CPM (premium targeting)
$50 budget = ~1,430 impressions
$100 budget = ~2,860 impressions
$500 budget = ~14,300 impressions
$1,000 budget = ~28,570 impressions
At $15 CPM (FAST/broad targeting)
$50 budget = ~3,330 impressions
$100 budget = ~6,670 impressions
$500 budget = ~33,330 impressions
$1,000 budget = ~66,670 impressions
For local businesses, the key insight is that even modest budgets can generate meaningful impression volumes. A small business TV advertising campaign of $500 delivers tens of thousands of impressions to targeted local audiences.
Why it matters for your business
CTV CPM understanding helps you make informed decisions about your advertising mix and budget allocation.
Comparing CTV CPM to other channels
How does CTV compare to other advertising options?
CTV vs. Social media
Facebook/Instagram CPM: $8-20
TikTok CPM: $10-25
CTV CPM: $20-40
Social media offers lower CPMs but typically lower engagement and attention. CTV delivers premium video on the largest screen in the home, with higher completion rates and brand impact.
CTV vs. Traditional TV
Local cable CPM: $5-15 (but high minimum commitments)
National broadcast CPM: $20-50
CTV CPM: $20-40
CTV matches or beats traditional TV CPM while offering better targeting, no minimum commitments on some platforms, and measurable results.
CTV vs. Digital video
YouTube (all devices) CPM: $10-30
Pre-roll video CPM: $15-35
CTV CPM: $20-40
CTV commands a premium over general digital video due to the larger screen, lean-back viewing environment, and higher completion rates.
CTV vs. Audio
Podcast CPM: $18-50
Spotify CPM: $15-30
CTV CPM: $20-40
Audio and CTV serve different purposes. Audio excels for reach and frequency; CTV excels for brand building and visual messaging.
The efficiency calculation
CPM alone doesn't tell the complete story. Consider efficiency metrics:
Video completion rate (VCR) CTV delivers 90-95% video completion rates, compared to 40-60% for digital video. This means a $30 CPM with 95% completion may be more efficient than a $20 CPM with 50% completion.
Attention metrics TV viewers are more attentive than mobile users. Research suggests CTV ads receive 3-5x more attention than mobile video ads, making the higher CPM worthwhile for brand messaging.
Brand lift Studies consistently show CTV delivers 2-3x the brand lift of digital display advertising, partially justifying the CPM premium.
Attribution window CTV advertising impact often appears over longer windows (weeks to months) compared to direct-response digital channels. The true value may not be captured by immediate conversion tracking.
When CTV CPM makes sense
CTV advertising delivers the best ROI for:
Brand awareness campaigns: The premium format builds awareness efficiently
Local targeting: Geographic precision ensures budget reaches relevant audiences
Mid-funnel influence: CTV excels at consideration-stage impact
Trust-dependent purchases: TV credibility influences high-consideration decisions
Competitive differentiation: TV presence sets you apart from digital-only competitors
CTV may not be the best choice for:
Pure direct response: Lower-CPM channels may drive more immediate clicks
Very narrow niches: Limited scale may not justify the medium
Short-term promotions: Build time may exceed promotion window
How to take advantage of this trend
Understanding CTV CPM helps you maximize the value of your streaming TV advertising investment.
Optimizing for lower CPMs
Use programmatic platforms Self-serve platforms like Adwave often offer lower CPMs than direct platform buys because they aggregate inventory across multiple sources.
Embrace flexibility Allow campaigns to optimize across dayparts, days of week, and devices. The more flexibility you provide, the more efficiently the system can find quality impressions at lower costs.
Test FAST channels Free ad-supported streaming services like Tubi and Pluto TV offer quality inventory at lower CPMs than premium subscription services. Don't assume lower CPM means lower quality audiences.
Consider timing Launch campaigns in Q1 when CPMs are typically lowest. Avoid major tentpole events (Super Bowl, Olympics, elections) when advertiser demand spikes.
Start broad, then narrow Begin with broader targeting to establish baseline performance, then narrow based on data. Starting too narrow limits learning and inflates CPM.
Maximizing CPM value
Invest in creative quality A well-produced ad that engages viewers generates more value per impression. The production cost is a one-time investment that improves every impression's effectiveness.
Use sequential messaging Platforms that support sequential creative allow you to tell a story across multiple impressions, increasing the impact of each view.
Implement frequency caps Prevent wasted impressions by capping how often the same household sees your ad. Most campaigns benefit from 3-5 frequency caps per week.
Add QR codes QR codes on CTV ads enable direct response tracking, helping attribute conversions to TV exposure and demonstrating value beyond impressions.
Measure beyond impressions Track website visits, search volume, and conversion rates during campaign periods. CTV's value often appears in these downstream metrics rather than click-through rates.
Building an effective CTV strategy
Step 1: Define goals Determine what success looks like. Brand awareness? Consideration? Store visits? Your goals inform targeting, measurement, and budget allocation.
Step 2: Set realistic budgets Based on your target CPM and impression goals, calculate required investment:
Testing budget: $200-$500 (8,000-20,000 impressions at $25 CPM)
Awareness campaign: $500-$2,000/month
Sustained presence: $2,000-$5,000/month
Step 3: Choose platforms wisely For most small businesses, self-serve platforms like Adwave offer the best combination of low minimums, reasonable CPMs, and ease of use. Learn about CTV advertising options.
Step 4: Create effective ads Use AI tools to create professional TV commercials without production budgets. Focus on clear messaging, strong branding, and specific calls-to-action.
Step 5: Measure and optimize Track key metrics, test creative variations, and continuously optimize. Even small CPM improvements compound over time.
The bigger picture
CTV CPM trends reflect broader shifts in the advertising landscape that create opportunities for businesses of all sizes.
The democratization of TV advertising
Traditional TV advertising required massive budgets due to high minimum commitments, production costs, and inefficient targeting. CTV changes each of these factors:
Lower minimums: From $5,000+ to $50 on some platforms
Eliminated production costs: AI creates professional ads from existing assets
Precise targeting: Pay only to reach your specific audience
Measurable results: Track impressions, completion rates, and downstream impact
This democratization means small businesses can now access TV's brand-building power alongside the largest advertisers. A local restaurant can appear on the same screens as McDonald's, reaching the same premium-viewing environment.
Market maturation and CPM stabilization
The CTV market is maturing rapidly. According to Mason Interactive's 2025 trends analysis, CPM trends are shifting as the market evolves:
Supply growth: Major streaming services adding ad-supported tiers creates more inventory
Measurement improvement: Better attribution drives confidence in CTV investment
Fraud reduction: Industry initiatives decrease wasted spend
Standardization: Common metrics and buying processes reduce friction
These trends generally favor advertisers through more competitive pricing and clearer performance metrics.
The attention economy
As digital advertising faces increasing challenges with ad blockers, privacy restrictions, and attention fragmentation, CTV's value proposition strengthens:
No ad blockers: CTV ads cannot be blocked like desktop display ads
Full-screen format: No competition with other content on screen
Sound-on environment: Audio messaging reaches engaged viewers
Lean-back context: Viewers in relaxed, receptive state
These factors suggest CTV CPMs may maintain their premium position even as supply increases, because the quality of the impression justifies the cost.
What experts are saying
Industry analysts and advertising executives have noted the evolving CTV CPM landscape.
AI Digital's comprehensive guide notes that "the high CPMs of connected TV ads (often $25-65 per thousand impressions) create unique dynamics in the advertising marketplace." The guide emphasizes that while CPMs may seem high compared to digital display, the quality of impressions delivered justifies the investment for brand-focused advertisers.
Marketing Architects' analysis observed that "CTV media has traditionally carried premium prices, with higher costs per thousand impressions compared to both linear TV and true digital channels." However, the article notes that supply expansion is creating opportunities for advertisers to access quality inventory at more competitive rates.
The consensus among industry observers is that CTV CPMs are normalizing as the market matures, creating better value for advertisers while maintaining the premium positioning that reflects the medium's effectiveness. For small business advertisers, this maturation means better access to TV advertising at more predictable, manageable costs.
Common questions answered
What is a good CPM for CTV advertising?
A "good" CPM depends on your goals and targeting. For broad awareness campaigns, CPMs of $20-25 represent good value. For highly targeted campaigns reaching specific audiences, CPMs of $30-45 may be appropriate given the precision. The key metric is efficiency: are you reaching the right people at a cost that delivers positive ROI? With platforms like Adwave averaging $25 CPM, most small businesses can achieve meaningful reach within reasonable budgets.
Why is CTV CPM higher than digital display?
CTV CPM is higher because you're paying for premium inventory: full-screen video ads on the largest screen in the home, viewed in a lean-back environment with sound on. Viewers complete over 90% of CTV ads compared to less than half of digital video ads. The attention quality, brand safety, and lack of ad blocking justify the premium.
How do I calculate how many impressions I'll get?
Divide your budget by the CPM, then multiply by 1,000. For example: $500 budget ÷ $25 CPM × 1,000 = 20,000 impressions. This tells you approximately how many times your ad will be shown. Keep in mind that impressions don't equal unique viewers; frequency caps and campaign duration affect how many unique households you'll reach.
Is it better to pay higher CPM for better targeting?
Generally, yes, if the targeting improves relevance. Paying $35 CPM to reach your exact target audience is usually more efficient than paying $20 CPM to reach a broader group where half aren't potential customers. However, don't over-narrow your targeting. Test to find the optimal balance between reach and precision for your specific business.
How does CTV CPM compare to traditional TV?
CTV CPM ($20-40) is often comparable to or lower than national broadcast TV ($20-50) but typically higher than local cable ($5-15). However, traditional TV usually requires minimum commitments of thousands of dollars monthly, while CTV platforms accept budgets starting at $50. For small businesses, CTV's lower minimums make it more accessible despite similar or higher CPMs.
Will CTV CPMs continue to fall?
Industry analysts expect CPMs to stabilize rather than continuously fall. As supply increases (more ad-supported streaming inventory), CPMs face downward pressure. However, increasing advertiser demand and improved targeting capabilities create upward pressure. Most projections suggest CPMs settling in the $20-35 range for standard inventory, with premium targeting commanding higher rates.
What's the difference between CPM and other pricing models?
CPM (cost per thousand impressions) is the standard pricing model for CTV advertising, but you may encounter other models:
CPM: You pay for impressions delivered regardless of viewer action
CPCV (cost per completed view): You pay only when viewers watch the entire ad
CPA (cost per action): You pay when viewers take a specific action after seeing the ad
For most CTV campaigns, CPM is the default model. CPCV can be attractive for performance-focused advertisers, but availability is limited. CPA pricing for CTV is rare due to attribution challenges.
How does ad length affect CPM?
Longer ads typically command higher CPMs because they occupy more inventory:
15-second ads: Base CPM rates
30-second ads: 1.5-2x the 15-second rate
60-second ads: 2-3x the 15-second rate (limited availability)
For most advertisers, 30-second spots offer the best balance of message delivery and cost efficiency. 15-second spots work well for retargeting and brand reinforcement campaigns. When choosing ad length, consider both your creative needs and budget implications, as longer formats consume more of your impression budget.
Are there ways to reduce CTV CPM costs?
Several strategies can help reduce your effective CTV CPM. First, allow flexibility in your campaign settings, letting the platform optimize across dayparts and inventory sources. Second, consider FAST channels (Tubi, Pluto TV) which often offer lower CPMs than premium subscription services. Third, buy during off-peak seasons like Q1 when advertiser demand is lower. Fourth, use aggregated platforms that access inventory across multiple sources for competitive rates.
Supporting data
Key statistics on CTV CPM and advertising costs:
$20-40: Typical CTV CPM range according to industry benchmarks
$25: Average CTV CPM on platforms like Adwave
$45-65: Premium streaming direct-buy CPMs (Netflix, etc.)
$7-15: Base programmatic CPM before targeting is applied
90-95%: CTV video completion rates
20-40%: Q4 CPM increase due to seasonal demand
$50: Minimum campaign budget on accessible CTV platforms
2-3x: Brand lift advantage of CTV vs. digital display
$10-15: Linear TV CPM comparison point
Data sources:
Get started with CTV advertising
Understanding CTV CPM is the first step toward leveraging streaming TV advertising for your business. With CPMs averaging around $25 and minimum budgets as low as $50, CTV has never been more accessible for businesses of all sizes.
Adwave makes CTV advertising simple. Create a professional TV commercial in minutes using AI, set your targeting and budget, and launch your campaign across 100+ premium streaming channels. No agency required. No production costs. No long-term commitments.