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How Much Do Streaming Ads Cost?

Streaming TV advertising is a form of advertising that allows brands to reach audiences through streaming television platforms such as Netflix, Hulu and Amazon Prime Video. As more and more people are cutting the cord and turning to streaming services for their TV content, streaming TV advertising is becoming an increasingly popular way for brands to reach these audiences.

The cost of streaming TV advertising can vary depending on a number of factors, such as the target audience, ad format, and campaign length. However, there are some general guidelines to consider when budgeting for a streaming TV ad campaign.

One of the biggest factors that determines the cost of a streaming TV ad campaign is the target audience. Advertisers can target specific demographics, such as age, gender, and location, which can affect the cost. For example, targeting a younger, more affluent audience may cost more than targeting a broader, older audience. Additionally, targeting can also be based on the content and genres, such as targeting a comedy show vs a drama show, targeting a specific streaming service or a specific streaming device, all these can affect the cost of the campaign.

Another important factor to consider is the ad format. Streaming TV ads can come in many different formats, such as video ads, interactive ads, and overlays. Video ads are the most common and typically the most expensive, while interactive and overlay ads tend to be less expensive. Advertisers can also choose from a variety of ad lengths, from short 15-second spots to longer, 2-minute ads. The longer the ad, the more it will cost. Additionally, streaming services now offers options such as sponsorship, product placement and branded content, which can provide more visibility and engagement, but also increase the cost of the campaign.

The campaign length is another important factor to consider. Short-term campaigns that run for a few days or weeks may be less expensive than longer campaigns that run for several months. Additionally, the time of year, such as holidays, may affect the cost as some times of the year are more expensive than others, also if the campaign runs in premium ad inventory it will cost more.

As for the pricing model, streaming TV ads can be purchased using a number of different pricing models, such as CPM (cost per thousand impressions), CPCV (cost per completed view) and CPA (cost per acquisition). CPM is the most common pricing model and is based on the number of times an ad is displayed, while CPCV is based on the number of times an ad is viewed to completion, and CPA is based on the number of conversions. However, CPM and CPCV are considered legacy metric, as they don't capture the full value of the ad exposure and engagement, and many streaming platforms are shifting towards more advanced metrics such as engagement rate, video completion rate, and click-through rate (CTR).

The cost of streaming TV advertising can vary widely depending on the platform that is used. For example, streaming TV advertising on Netflix can be more expensive than advertising on Hulu or Amazon Prime Video, due to Netflix's large and highly-engaged audience. Additionally, newer streaming platforms that have smaller audiences may offer more affordable advertising options.

On average, streaming TV ad prices can range from $10 to $30 CPM. However, it's worth noting that this is just a rough estimate, and actual costs will depend on the specific details of the campaign and the ad platform that is used. Keep in mind that for streaming TV advertising, the costs are usually negotiated as part of a package, meaning that the ad inventory is sold in bulk, usually based on a monthly or annual contract, giving advertisers a guaranteed reach, frequency, and delivery for a negotiated price.

Find out how Simulmedia’s unique TV+® platform for TV and streaming advertising provides unified access to premium linear and CTV inventory across all networks and publishers. Request a demo or email us at advertise@simulmedia.com.