Chasing low CPMs in CTV is like buying penny stocks instead of blue-chip stocks; lower CPMs may seem appealing, but higher-quality targeting in CTV provides better value and performance.
CPM may assist in budgeting, but it fails to consider audience quality, leading to spending inefficiencies when ads reach non-converting viewers, especially in linear TV.
CTV offers precise audience targeting, reducing wasted ad spend significantly, unlike linear TV's broad reach with low CPMs, which ultimately does not convert well.
Marketers accustomed to social and search platforms need to adjust their understanding of CPM in CTV; higher costs come with better targeting and potential ROI.
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