How to Achieve the Lowest CPMs in Connected TV Advertising

Connected TV (CTV) has revolutionized the way we consume television content. With CTV, viewers can stream their favorite shows and movies on a variety of devices, including smart TVs, gaming consoles, and streaming devices. This has led to a significant increase in CTV viewership, making it an attractive platform for advertisers to reach their target audience. One of the key metrics that advertisers consider when running a CTV campaign is the cost per thousand (CPM) impressions. In this blog post, we will discuss the lowest CPMs in CTV and how to achieve them.

Understanding CPM and its Importance in CTV Advertising

The cost per thousand (CPM) impressions is a metric used to measure the cost of an advertisement on a CTV platform. It is calculated by dividing the cost of the ad campaign by the number of impressions in thousands. For example, if an ad campaign costs $10,000 and has generated 1,000,000 impressions, the CPM would be $10. CPM is important for advertisers because it helps them to determine the effectiveness of their ad campaign and how much they are paying for each impression.

Factors That Affect CPM in CTV Advertising

There are several factors that affect the CPM in CTV advertising. The first factor is the target audience. Advertisers can reach a specific audience by targeting their ads based on demographics, interests, and behaviors. The more targeted the audience, the lower the CPM.

The second factor is the ad format. Video ads tend to have a higher CPM than display ads, as they are more engaging and can generate more impressions. However, interactive video ads, such as pre-roll and mid-roll ads, have the lowest CPM because they are more engaging and have a higher click-through rate (CTR).

The third factor is the ad placement. Advertisers can choose to place their ads in premium or non-premium content. Premium content, such as live sports or popular shows, tends to have a higher CPM because it attracts more viewers. On the other hand, non-premium content, such as B-movies, tends to have a lower CPM.

How to Achieve the Lowest CPMs in CTV Advertising

There are several strategies that advertisers can use to achieve the lowest CPMs in CTV advertising. The first strategy is to target a specific audience. Advertisers can use data from the CTV platform to target their ads based on demographics, interests, and behaviors. This will help them to reach the right audience and achieve a lower CPM.

The second strategy is to use interactive video ads. Interactive video ads, such as pre-roll and mid-roll ads, tend to have a lower CPM because they are more engaging and have a higher CTR. Advertisers can use these ad formats to increase the effectiveness of their ad campaign and achieve a lower CPM.

The third strategy is to use programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of CTV ad inventory. This helps to increase the efficiency of the ad campaign and achieve a lower CPM.

In conclusion, CTV advertising is an effective way for advertisers to reach their target audience. The CPM is an important metric for advertisers to consider when running a CTV campaign. By understanding the factors that affect CPM in CTV advertising and using strategies such as targeting a specific audience, using interactive video ads, and using programmatic advertising, advertisers can achieve the lowest CPMs and get the most out of their ad spend.

Additionally, it is important to keep in mind that CTV advertising is still a relatively new field, and it is constantly evolving. Therefore, it is crucial for advertisers to stay up-to-date on the latest trends and best practices in CTV advertising to ensure that they are getting the best results from their campaigns.

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.