CTV Ad Prices Fall as Inventory Surges, Forcing Strategic Reset

399

Connected TV (CTV) is booming, but not in the way advertisers expected. Despite the U.S. CTV ad market surpassing $33 billion in 2025, average CPMs have dropped by 10% to 30% year-over-year. The culprit? A flood of new inventory and a shift toward performance-driven buying.

Major streamers have ramped up ad-supported offerings and increased ad loads, creating a glut of supply. As a result, nonpremium CTV buys now average below $30 CPM, down from previous highs. Advertisers, meanwhile, are negotiating harder and demanding more measurable outcomes — pushing vendors to rethink their value proposition.

This has led to a surge in curated inventory packages, where high-quality placements are bundled and sold at a premium. These packages promise better performance and brand safety, offering an alternative to the open exchange’s race to the bottom.

“CTV is no longer just about reach — it’s about relevance and results,” said a senior media buyer quoted in the report. “We’re seeing a clear pivot toward curated deals that deliver on both.”

The trend signals a maturing market. As CTV becomes a staple in media plans, marketers are moving beyond experimentation and demanding accountability. The days of paying top dollar for broad reach are fading. Instead, precision, context, and performance are taking center stage.