Digital advertising CPMs dropped by 49% year-over-year, on average, according to AdRoll data from 2,000 online businesses in North America spanning finance, beauty and fashion, fitness, technology, travel and other industries. That follows a 33% decline in YoY average CPM in this year’s first quarter, and a significant departure from the past two years, when average CPM increased between Q1 and Q2.
Linear TV ad revenue and pricing — until now largely immune to cord-cutting and the shift of viewers to streaming — is getting close to a tipping point with Netflix and Disney Plus entering the ad-supported video business, Wells Fargo Securities media analyst Steven Cahall says in a new report.
Traditional legacy TV has seen higher “effective” cost-per-thousand prices for deals in the TV upfront ad markets over the last three TV seasons, according to Standard Media Index — but with lower total upfront advertising spend in key dayparts. SMI says the trend is expected to continue for the next TV upfront ad market, set to begin in a few weeks.
Beginning this week, all NBC and Telemundo-owned local TV stations will use impressions instead of traditional ratings points to measure an ad campaign’s effectiveness, according to an agency pitch document. According to the document, NBC/Telemundo owned-stations’ sales teams will begin to move to CPM measurement “starting immediately.”
After crashing in January, broadcast advertising costs rose to their highest February since 2013, pushing overall ad costs up for the national TV marketplace in the second month of 2016. Cable ad costs, meanwhile, seesawed slightly, showing downward momentum on a month-to-month basis.
TV broadcast networks cost-per-thousand viewer prices are still tops among all media in 2013 — with digital in-stream video CPMs higher than cable TV.
