Strike Overview
- Access detailed benchmarks for CTV advertising rates, including average CPM and CPV, and viewability metrics, with specific data from recent 2024 campaigns showing how these rates compare across different states and device types.
- Feeling the pressure to add CTV ads to your plan? It’s for good reason—this channel is now 35% larger than OLV advertising and one of the fastest-growing ad formats in the US.
- 84% of advertisers have already shifted to CTV over linear TV, a trend that will likely grow as more social media platforms, including YouTube, Google, and LinkedIn, adopt CTV media buys.
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What Are the CTV Advertising Rates and Benchmarks?
To help you get started, we’ve compiled data from our social media advertising campaigns that successfully incorporated YouTube TV and Google TV ads. This information will provide benchmarks for CTV advertising costs, allowing you to plan your future campaigns better.
Average CPM for Connected TV Ads
The CPM for CTV ads falls within the median range of our 2023 YouTube campaign benchmarks ($5.70 to $12.36). This suggests that the CPM for Connected TV advertising should align closely with the costs you’ve already planned for your existing ad strategy, making the transition to CTV more manageable.
| Ad Format | Q1 2024 CPM Range | Q2 2024 CPM Range |
|---|---|---|
| Trueview Instream Non-Skippable | $7.39-$9.30 | $7.79-$10.01 |
| VVC Skippable | $6.45-$7.09 | $4.74-$5.09 |
The outcome of campaigns fluctuates based on various factors like targeting, budget, creatives, etc., which impact overall performance.
What is a Good CPM for CTV?
The average CPM for CTV ads can vary significantly across different states, especially during high-stakes periods like the U.S. presidential election. Political ad spending can drive up costs, particularly in swing states where campaigns heavily invest in influencing outcomes. Monitoring CPM rates closely is essential for your campaigns to avoid overspending while maintaining competitive bids.
Here are some state-specific CPM benchmarks to consider:
| U.S. State-specific ads | CPM Range |
|---|---|
| Arizona* | $7.98 – $9.04 |
| Connecticut | $5.10 – $9.99 |
| Florida | $8.34 – $9.15 |
| Indiana | $8.44 – $10.14 |
| Iowa | $8.43 – $9.87 |
| Maryland | $4.67 – $8.85 |
| Montana | $7.75 – $10.50 |
| Nebraska | $9.08 – $10.66 |
| New Jersey | $4.64 – $8.46 |
| North Dakota | $8.36 – $9.91 |
| Ohio | $4.60 – $8.62 |
| Pennsylvania* | $4.72 – $9.20 |
| South Carolina | $8.59 – $10.80 |
| South Dakota | $8.11 – $9.68 |
| Virginia | $7.80 – $10.01 |
| West Virginia | $8.22 – $9.78 |
| Wisconsin* | $8.41 – $10.25 |
Source: 2024 CampaignLab data, Strike Social Proprietary Tool
The outcome of campaigns fluctuates based on various factors like targeting, budget, creatives, etc., which impact overall performance.
Average CTV Ads Cost-Per-View (CPV)
Given that CTV ads can be both non-skippable and skippable, a reliable way to determine the average CPV is by examining completed views from TrueView InStream Skippable Campaigns. Here are the CTV advertising rates in terms of cost-per-view for your 2024 campaigns:
| Ad Format | Q1 2024 CPV Range | Q2 2024 CPV Range |
|---|---|---|
| VVC Skippable | $0.0128 – $0.0220 | $0.0132 – $0.0200 |
Reflecting on our 2023 YouTube CPV benchmarks, the typical range was between $0.010 to $0.027 per view. In comparison, the 2024 Connected TV benchmarks indicate an average of $0.012 to $0.020 per view.
Several factors can influence CTV advertising costs, including peak advertising seasons like Prime Day and the 4th of July. As the data suggests, CPV rates tend to be slightly lower in Q1, following major holidays like Thanksgiving and Christmas. Rates then rise slightly in Q2, driven by events like Mother’s Day, the third-largest retail holiday of the year.
Average Viewability Rates for Advertising on CTV
Focusing on skippable ads helps establish benchmarks you can rely on when assessing viewability rates for CTV ads. Non-skippable ads on Connected TV devices are almost always viewed to completion, with YouTube TV typically achieving view rates above 90%, as shown by our TrueView InStream Non-Skippable Google TV and YouTube TV campaigns:
| Campaign Type | View Rate % (completed views) |
|---|---|
| Trueview Instream Non-Skippable | 93.99% – 96.59% |
The outcome of campaigns fluctuates based on various factors like targeting, budget, creatives, etc., which impact overall performance.
The data for VVC and Skippable Campaigns reveals that 30-second ad creatives tend to achieve higher video completion rates (VCR) than shorter formats. This indicates that Connected TV audiences are more receptive to ads that unfold a narrative, leading to higher engagement.
While longer ads may be better for storytelling, shorter ads can still be effective, especially if the goal is to make a strong impression right from the start.
| Campaign Type | Ad Length | View Rate % (completed views) |
|---|---|---|
| Trueview Instream Skippable | <15 | 33.96% – 45.23% |
| 15 | 55.46% – 73.66% | |
| 30 | 64.17% – 74.50% |
The outcome of campaigns fluctuates based on various factors like targeting, budget, creatives, etc., which impact overall performance.
Comparing CTV Ads Costs and Performance with Social Media Advertising
Now that you know the benchmarks for CTV advertising costs, your next question is probably: Is it cheaper to advertise on social media or TV?
As you plan your budget for platforms like Google TV and YouTube Connected TV, it’s crucial to understand how CTV advertising rates compare to those for mobile, desktop, and tablet devices.
What is the Average CPM for CTV Ads vs. Social Media Campaigns?
Based on our 2024 YouTube campaigns that included CTV advertising, the current CPM for CTV ads ranges from $8.72 to $10.01. Here’s how this compares with CPM rates for other devices:
The data shows that while overall CPM rates increased in Q2 2024, CTV advertising rates remained at or below $10. In fact, the average CPM for CTV ads decreased by 3% from Q1 to Q2, in contrast to other devices, which saw a rate increase.
How Much Do CTV Ads Cost in Terms of CPV?
For brands focusing on maximizing views, the CPV is a key metric. To assess the competitive edge of Connected TV advertising, we compared the CPV of skippable CTV ads with those of mobile and desktop ads. See the image on how CTV measures up.
The average CPV for CTV ads falls within the YouTube CPV benchmarks, with Connected TVs and tablets decreasing from Q1 to Q2. Conversely, CPV costs for mobiles and computers increased by 4-5% but remained comparable across all device placements.
With these benchmarks for CTV advertising rates in mind, you now understand your potential costs and how to budget effectively for CTV ads. The data shows that Connected TV can often be more cost-effective compared to other devices, although there may be times when costs are slightly higher. Overall, CTV advertising should fit comfortably within your budget and can offer valuable benefits without disrupting your overall media plan.
Should You Integrate CTV Ads or Focus Solely on CTV?
It’s tempting to prioritize CTV ads simply because they might offer lower costs and potentially higher views or impressions within your budget. However, it’s important not to abandon your existing social media strategy.
If your social media advertising has already established a strong presence, complementing CTV ads with your strategy can enhance your overall results. The benefits of combining CTV with social media advertising generally outweigh the costs, making it a worthwhile investment in amplifying your brand’s reach and impact.
Case Study:
One of our clients in the financial sector demonstrates the value of integrating Connected TV (CTV) ads with existing social media campaigns to enhance overall performance.
After incorporating YouTube TV and Google TV ads into their strategy in Q1 2024, they achieved a 3.42% reduction in overall CPV for YouTube TrueView In-stream Skippable campaigns from Q1 to Q2 2024.
Additionally, CPV rates for Connected TV and tablet device placements also saw significant reductions, illustrating that integrating CTV into your advertising mix offers cost efficiencies and complements and enhances your existing advertising efforts.
How to Manage Your CTV Advertising Costs Alongside Your Social Media Advertising
Integrating Connected TV (CTV) ads into your media plan may seem like embarking on a new advertising venture. However, with the right approach, it can seamlessly complement your existing social media campaigns. Here’s how to effectively manage CTV advertising costs while keeping your social media efforts on track:
Proper Campaign Pacing
To effectively manage your CTV advertising costs, it’s essential to ensure your budget is evenly distributed across all campaigns and throughout the entire campaign duration. This approach helps maintain cost efficiency and delivers consistent results over time.
When integrating CTV ads, such as those on YouTube TV and Google TV, leverage highly integrated campaigns like Video Reach Campaigns. These campaigns are designed to optimize placements and reach your target demographic with impactful marketing. By allowing these platforms to determine the best ad placements, you maximize your campaign’s effectiveness and prevent overspending.
With the right expertise and optimization, you can achieve steady, high-impact results throughout your campaign. This strategic approach ensures that your CTV ads work harmoniously across various devices, delivering consistent performance without exceeding your budget.
Further Reading
Understanding Campaign Pacing in Social Media Advertising
Proper pacing in your social media ad campaigns can make or break the results of your digital advertising efforts. Explore the good, the bad, and the ugly when it comes to ad pacing for your campaigns.
Redefine Your Campaign Goals
As CTV advertising gains traction, major social media platforms are rapidly integrating CTV media buys and partnerships to stay competitive. To make the most of this trend, you must align your campaign objectives with the right platforms that offer CTV ads:
- LinkedIn: Recently introduced CTV advertising, ideal for B2B brands looking to extend their reach beyond the LinkedIn platform. Use LinkedIn’s CTV options to boost brand awareness and connect with professionals in a new, engaging format.
- Google TV: Available exclusively for reach campaigns, Google TV taps into a vast audience of 20 million monthly users. It’s an excellent choice for broadening your brand’s visibility and engaging with a large viewer base.
- YouTube TV offers a range of ad formats that provide flexibility for different campaign stages, from awareness to conversion. These diverse options allow you to tailor your approach based on your specific funnel objectives.
Aligning your CTV ad strategy with these platforms enables you to effectively achieve your campaign goals and maintain a strong presence across social media and Connected TV channels.
Partner with a Trusted Social Media Advertising Team
Collaborate with a team experienced in managing CTV campaigns to ensure your new efforts integrate smoothly with your existing social media strategy. A dedicated partner will help you balance and optimize CTV and social media advertising, ensuring that neither effort is compromised and your overall strategy remains cohesive.
This level of support allows you to expand into CTV advertising without diluting your current social media initiatives, ultimately enhancing your overall marketing impact.
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Managing CTV Advertising Costs for a Well-Rounded Media Strategy
As social media continues to evolve rapidly, adapting to changes in audience behavior and content consumption, advertisers must keep pace with these advancements. With a clearer understanding of CTV advertising rates, you’re ready to craft a media strategy that integrates Connected TV and expands your brand’s reach.
Do you have any CTV advertising ideas you want to discuss with our team? Contact us, and our team will reach out to prepare you for adding Connected TV advertising to your social media strategy.
