CPM, or cost per mille (thousand impressions), is the standard pricing unit for CTV advertising. Understanding how CPMs work helps you evaluate proposals, compare options, and budget effectively.
What CPM Means
When you pay a $40 CPM, you pay $40 for every 1,000 impressions delivered. An impression = one ad served to one household.
Simple math:
- $40 CPM × 100,000 impressions = $4,000 spend
- $50,000 budget ÷ $40 CPM = 1,250,000 impressions
CPM is the base unit, but it’s not the only cost metric that matters.
Current CTV CPM Ranges
CTV CPMs vary by inventory quality and targeting:
| Inventory Type | CPM Range |
|---|---|
| Premium SVOD (Hulu, Peacock, Max) | $40-55 |
| Mid-tier streaming | $35-45 |
| FAST channels (Tubi, Pluto, Freevee) | $20-35 |
| Local/regional streaming | $25-40 |
| Sports streaming | $45-65 |
| News streaming | $30-45 |
Blended average for law firm campaigns: $35-45 CPM
Industry range: $25-65. Where you land depends on inventory mix and targeting precision.
What Drives CPM Higher vs. Lower
Option A
Option B
The Direct vs. Reseller Gap
Where you buy matters:
That 39% markup adds up fast. On a $50K/month campaign, you’re paying $14K extra annually for the same impressions through resellers. Ask where your inventory actually comes from.
CPM vs. Effective CPM
Raw CPM doesn’t account for targeting quality. Effective CPM measures cost to reach potential clients specifically.
Example calculation:
| Approach | CPM | Target % | Effective CPM |
|---|---|---|---|
| Broadcast TV | $25 | 8% | $312 |
| Basic CTV | $35 | 15% | $233 |
| Targeted CTV | $45 | 28% | $161 |
The highest CPM option is actually cheapest for reaching the people who matter.
Beyond CPM: Cost Per Completed View
CPM measures impressions. Cost per completed view measures actual ad consumption.
Calculation: CPCV = (CPM / completion rate) × 100
| Channel | CPM | Completion | CPCV |
|---|---|---|---|
| CTV | $40 | 95% | $0.042 |
| YouTube | $15 | 30% | $0.050 |
CTV’s higher CPM delivers lower cost per completed view because nearly everyone watches the full ad. Your entire message lands. Not just the first 5 seconds before skip.
Cost per completed view: $0.012-$0.020. Compare that to YouTube where you’re paying for views that bail at 5 seconds.
CPM Trends
CTV CPMs have been declining as supply grows:
- Inventory increased as streaming services added ad tiers
- By 2025, only Netflix and Max average CPMs above $30
- Most platforms settling into competitive ranges
More inventory generally means better pricing for advertisers. However, premium placement and precise targeting maintain premiums.
Evaluating CPM Proposals
When reviewing CTV pricing:
Ask About Inventory Mix
“What percentage is premium vs. FAST?” Lower CPMs might mean lower-quality inventory.
Understand Targeting Costs
“Is behavioral targeting included or additional?” Some platforms quote base CPM then add targeting fees.
Check for Hidden Fees
“Are there platform fees, data fees, or tech fees beyond CPM?” Total cost matters more than CPM alone.
Verify Impression Quality
“What’s the completion rate?” High CPM with 95% completion beats low CPM with 60% completion.
Request Transparency
“Can I see where ads ran?” Knowing actual placement validates CPM value.
CPM Budgeting Framework
For budget planning:
Step 1: Determine target impressions
- How many households do you want to reach?
- How many times per household (frequency)?
- Reach × Frequency = Total impressions needed
Step 2: Estimate blended CPM
- Premium-heavy mix: $45-50
- Balanced mix: $38-42
- FAST-heavy mix: $28-35
Step 3: Calculate media cost
- Impressions needed × CPM / 1,000 = Media cost
Step 4: Add fees
- Management/platform: 10-20%
- Data/targeting: 5-15%
- Total: Media cost × 1.15-1.35
Example:
- Target: 800,000 impressions
- Blended CPM: $40
- Media cost: $32,000
- With 20% fees: $38,400/month
What Good Value Looks Like
CPM alone doesn’t determine value. Consider the complete picture:
| Factor | Red Flag | Good Sign |
|---|---|---|
| CPM | Under $20 | $35-50 |
| Completion | Under 85% | 94%+ |
| Targeting | Demographics only | Behavioral + intent |
| Attribution | Impressions only | Verified visits + conversions |
| Transparency | Won’t share placement | Full reporting |
CTV campaigns deliver 23% higher ROI than traditional TV. But only when CPM represents quality inventory with proper attribution.
References
- Tatari. (2025). What is CTV: Understanding connected TV advertising. https://www.tatari.tv/insights/what-is-ctv-understanding-connected-tv-advertising-in-2025
- Marketing Architects. (2025). Inventory glut and curation strategies. https://www.marketingarchitects.com/blog/inventory-glut-and-curation-strategies-shake-up-ctv-ad-costs
- SEO Design Chicago. (2025). CTV advertising statistics. https://seodesignchicago.com/case-study/ctv-connected-tv-advertising-statistics-2025/
- eMarketer. (2025). What awaits advertisers in 2025. https://www.emarketer.com/content/what-awaits-advertisers-2025-more-inventory-lower-cpms
- Southern California News Group. (2025). Connected TV marketing stats 2025. https://www.socalnewsgroup.com/2025/05/06/connected-tv-marketing-stats-2025/