At first glance, broadcast TV CPMs look lower than CTV. But CPM doesn’t tell the whole story. When you factor in targeting, waste, and measurement, the cost comparison shifts.
Headline CPM Comparison
| Medium | Typical CPM |
|---|---|
| Broadcast TV (local) | $15-30 |
| Cable TV | $12-25 |
| CTV | $35-50 |
CTV looks more expensive. But CPM is cost per thousand impressions. It doesn’t measure cost per relevant impression.
The Targeting Difference
Option A
Option B
What This Means
Broadcast reaches everyone in your DMA, including:
- People outside your service area
- People who will never need PI services
- Households with no relevance
CTV can focus on:
- Your specific service area
- Households with accident risk signals
- Relevant behavioral indicators
Effective CPM Calculation
Broadcast Example
- $20 CPM
- 500,000 impressions in DMA
- Only 20% in your actual service area
- Of those, maybe 30% have any relevance
Effective CPM on relevant impressions:
- Relevant impressions: 500,000 × 20% × 30% = 30,000
- Cost for 500,000: $10,000
- Effective CPM: $10,000 / 30 = $333
CTV Example
- $45 CPM
- 500,000 impressions
- 90% in your service area (targeted)
- 60% with behavioral relevance (targeted)
Effective CPM on relevant impressions:
- Relevant impressions: 500,000 × 90% × 60% = 270,000
- Cost for 500,000: $22,500
- Effective CPM: $22,500 / 270 = $83
CTV’s higher CPM delivers lower effective cost per relevant impression. You’re paying $45 CPM to reach 270K relevant households vs. $20 CPM to reach 30K. That’s 9x the relevant reach for 2.25x the cost.
Measurement Value
Broadcast Measurement
- Did the ad air? Yes.
- How many saw it? Estimated (Nielsen panels).
- Did they respond? Unknown.
- Attribution to leads? Very difficult.
CTV Measurement
- Did the ad air? Yes, confirmed.
- Did they watch it? 94-96% completion rates.
- Did they respond? Verified visit tracking.
- Attribution to leads? Connected attribution.
CTV delivers 23% higher ROI than traditional TV. Partly because you can measure and optimize.
Production Cost Comparison
Same Creative Requirements
Both require professional TV commercials:
- 30-second primary spot
- Possibly 15-second cutdowns
- Professional production quality
Production Costs: Similar
- $15,000-35,000 for quality production
- Same regardless of where it airs
- CTV may require digital formatting
Production costs are essentially equal.
Minimum Investment Comparison
Broadcast Minimums
| Market Size | Typical Monthly Minimum |
|---|---|
| Small DMA | $15,000-25,000 |
| Mid DMA | $30,000-60,000 |
| Major DMA | $75,000-200,000 |
Broadcast minimums driven by ad unit costs and flight requirements.
CTV Minimums
| Market Size | Effective Monthly Minimum |
|---|---|
| Small DMA | $12,000-20,000 |
| Mid DMA | $25,000-45,000 |
| Major DMA | $50,000-80,000 |
CTV minimums are about achieving meaningful frequency, not unit costs.
CTV often has lower effective minimums, especially in major markets.
Flexibility Comparison
Broadcast Flexibility
- Committed flights (4-8 weeks typical)
- Cancellation penalties
- Limited mid-flight changes
- Fixed dayparts
CTV Flexibility
- Often month-to-month
- Pause/resume capability
- Real-time optimization
- Targeting adjustments
CTV provides significantly more flexibility.
Reach Comparison
Broadcast Reach
- Still reaches cord-holders
- Declining audience (21% decline since 2021 for broadcast)
- Older demographic skew
- Still substantial in some markets
CTV Reach
- 90% of households use streaming
- 44.8% of viewing is streaming
- Younger and growing audience
- Where viewership is trending
The audience has shifted to CTV. Following them isn’t optional.
Total Cost of Ownership
Broadcast Annual Program
| Category | Annual Cost |
|---|---|
| Media | $600,000 |
| Production | $30,000 |
| Trafficking | Included |
| Measurement | Limited |
| Total | ~$630,000 |
Waste factor: High (broad targeting) Measurement: Poor Optimization: Limited
CTV Annual Program
| Category | Annual Cost |
|---|---|
| Media | $500,000 |
| Platform/management | $75,000 |
| Production | $30,000 |
| Tracking/attribution | $8,000 |
| Branded search | $50,000 |
| Total | ~$663,000 |
Waste factor: Low (precision targeting) Measurement: Strong Optimization: Continuous
Similar total cost, very different value delivery. The question isn’t “which is cheaper.” It’s “which generates more signed cases per dollar.” Measurement answers that question, and only CTV provides it.
When Each Makes Sense
Option A
Option B
The Hybrid Question
Some firms run both:
- Broadcast for broad reach
- CTV for targeted precision
- Combined presence
This can work with sufficient budget. But don’t run broadcast just because “we’ve always done it.”
The Trend Direction
Viewership continues shifting:
- Streaming: 44.8% and growing
- Broadcast: 21.4% and declining
- Cable: 27.3% and declining
Following the audience to CTV isn’t aggressive. It’s necessary.
For detailed CTV costs, see How Much Does CTV Cost.
References
- IAB & Innovid. (2022). CTV takes center stage. https://www.iab.com/wp-content/uploads/2022/05/Innovid_CTV-Takes-Center-Stage.pdf
- Southern California News Group. (2025). Connected TV marketing stats 2025. https://www.socalnewsgroup.com/2025/05/06/connected-tv-marketing-stats-2025/
- Nielsen. (2025). Streaming reaches historic TV milestone. https://www.nielsen.com/news-center/2025/streaming-reaches-historic-tv-milestone/
- Nielsen. (2025). Connected TV: Transforming advertising trends. https://www.nielsen.com/insights/2025/connected-tv-transforming-advertising-trends/