Amazon Prime Video’s Ad Tier Launch Causes Significant Drop in CPM Prices

Amazon Prime Video recently launched an ad-supported tier, leading to a decrease in CPM prices. According to a forecast for Q2 2025, Netflix and HBO Max will be the only streaming services with average CPMs higher than $30. This shift in the streaming landscape has also impacted linear TV ad prices, which are now on the decline after years of growth.

In contrast, Connected TV (CTV) ad spend is projected to reach $33.35 billion in 2025, indicating a significant shift in advertising trends. Additionally, social ad CPMs are on the rise, with platforms like TikTok experiencing the highest growth according to a Q3 2024 KPI forecast.

Marketers can leverage the dip in streaming and linear TV costs to balance out the increasing cost of social advertising. To delve deeper into these trends, you can explore related reports from EMARKETER such as the Digital Video Forecast and Trends Q3 2024 and 7 Charts That Define Digital Markets in 2024 and Beyond (EMARKETER subscription required).

These estimates from EMARKETER are based on a thorough analysis of various factors influencing the ad spending market, including economic conditions, historical trends, consumer behavior, and interviews with industry experts. It’s clear that the advertising landscape is evolving, and marketers need to stay informed and adaptable to navigate these changes effectively.