Connected TV (CTV) advertising is changing, and I'm noticing a pattern. While everyone acknowledges CTV's potential, many are sitting on the sidelines, convinced that meaningful CTV campaigns are reserved for brands with Super Bowl-sized budgets. Here's what's interesting though - you can get started with CTV for as little as $10,000 per month, a fraction of what you'd need for an effective local TV campaign.
But here's the thing - that accessibility is about to get even better in 2025. New data from eMarketer just published should make every middle-market brand marketer sit up and take notice: CTV CPMs are projected to drop significantly across all major streaming platforms, with most landing in the $28-31 range by Q2 2025. We're talking about a nearly 30% decrease from current rates. At this time last year, my team was quoting in the $40-$50 CPM range for the same publishers!
What's driving this shift? Amazon Prime Video's new ad tier is creating a ripple effect across the streaming landscape. When a player of Amazon's size enters the market, it creates downward pressure on CPMs across all platforms. Netflix, Disney+, Max, and others are all projected to see significant CPM decreases. This isn't just a temporary dip - it's a structural change in the market that creates a perfect entry point for middle-market brands.
This is particularly exciting if you've been watching your local competitors dominate traditional TV advertising. While they're locked into inflexible local TV buys with CPMs often exceeding $50, you can now reach the same audiences - often with better targeting - for almost half the cost. Plus, you're reaching cord-cutters and streaming-only households that traditional TV simply can't access anymore.
But let's move beyond the price tag for a moment. The real power of CTV isn't just in its increasingly accessible cost structure - it's in the precision of its targeting capabilities. Unlike traditional TV, where you're essentially throwing your message into the wind and hoping it reaches the right audience, CTV offers the kind of granular targeting that digital marketers have come to expect from other channels. Want to target specific zip codes in your market? You can do that. Looking to reach households with specific income levels or purchase behaviors? That's possible too. We're talking household-level targeting, behavioral segmentation, and real-time optimization capabilities that traditional TV can only dream about.
The measurement piece is equally compelling. With CTV, you're not stuck with gross rating points and broad demographic data. You can get detailed attribution metrics that tie back to actual business outcomes. We're seeing clients track everything from website visits to in-store foot traffic back to their CTV campaigns. Try getting that level of insight from a traditional TV buy.
So, what's the first step for middle-market brands looking to take advantage of this opportunity? Start small, but start smart. Consider allocating $10,000-15,000 monthly as a test - that's enough to make an impact in most local markets. Focus on a single platform initially – we see solid performance from Hulu. And don't feel pressured to create expensive new creative assets. Many of your existing digital video assets can be repurposed for CTV with minimal modifications.
Here's what's particularly exciting for local businesses: while your competitors may be locked into quarterly or annual local TV contracts, CTV allows you to be nimble. You can adjust your targeting, creative, and spend levels in real-time based on performance. Having a big month? Scale up your spend. Need to pull back? You can do that too. This flexibility, combined with the lower cost of entry, means you can finally compete with - and often outmaneuver - larger competitors who are stuck in traditional TV buying patterns.
The window of opportunity here is unique but won't last forever. As CPMs stabilize and more brands enter the space, the early-mover advantage will diminish. We're already seeing several of our middle-market clients achieving cost-per-acquisition rates that rival their most efficient digital channels, with the added benefit of television's brand-building power.
If you're interested in exploring how CTV could fit into your 2025 media mix, let's connect. The numbers don't lie - there's never been a better time for middle-market brands to make their move into CTV advertising and gain an edge over their local competition.
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