Broadcast audiences have plummeted faster than ad spending. Leading to higher CPM's lower reach
Updated: Jun 17
Full article here https://bit.ly/3NXtZWb
The chief factor in increased CPM on traditional broadcast and cable is simple. The equation, fewer people watching and advertisers have been slow to shift budgets.
If a show once had 50,000 viewers and a :30 commercial sold for $1500 then the CPM was $30. If that same show now only has 30,000 viewers that same CPM on a $1500 :30 is $50. This is simple math and rates are not dropping any time soon. In order to maintain the same CPM the :30 would have to be $900, I don't see that happening. Add in the lack of modern measurement and targeting such as purchase intent, zip code, and digital measurement CPM really go through the roof. Age and gender targeting works for very few products. A 25-year-old is nothing like a 54-year-old. We all know it but somehow it continues to be a targeted demo.
An important point not to be overlooked. While CPM's are increasing on Broadcast and Cable, reach is plummeting. Nearly all (94%) of US linear ad impressions were served to just 55% of TV viewers in Q1 2022, according to Samba TV.
To be fair, this same article indicated that CTV CPM's will also increase. Completely possible but the CPM's I have been delivering have remained flat from 2018-2022. Here is an important factor in CTV CPM's. Unlike traditional Broadcast and Cable the CTV audience is growing.
The growth of CTV audiences will tame the CPM increase. Reach on CTV is also increasing.
Additionally, a great CTV provider should consistently monitor and look for new supply-side partners. Reach and Frequency can be optimized by deleting over-weighted deals. With data, tech, and better targeting the CPM term seems outdated. Rather than focus on delivering the lowest CPM's we focus on maximizing results by deleting deals that don't fall in line with agreed KPI's.
Want to talk CPM's? Want to talk CTV? 727 580 4857 I am always here.
Nearly all (94%) of US linear ad impressions were served to just 55% of TV viewers in Q1 2022, according to Samba TV.