Current landscape of the streaming advertising market
Global streaming advertising spend reached $30.10 billion in 2024, according to The Market Boxx. If you are a mid-sized digital agency wondering how much streaming advertising costs, the short answer is: less than you imagine, and with better results than you would get on traditional TV.
The rise of the AVOD model and ad-supported plans
Ad-supported plans are dominating the market. Netflix reported that 40% of its total accounts are now ad-supported subscriptions, an increase of 14% between Q4 2024 and Q3 2025, according to Dircom Confidencial. This means massive audiences willing to watch your message in exchange for free or more affordable content. For agencies, it represents premium advertising inventory that was previously inaccessible.
Cost differences between video, audio, and connected TV
The streaming video tends to be more expensive than audio, but it also generates greater visual impact. Platforms like Spotify handle lower CPMs, while connected TV offers the big-screen experience. The good news: the average CPM on streaming services dropped 21% in 2024, settling at approximately $25.68 according to The Market Boxx.
Pricing models and key industry metrics
Understanding CPM: The industry standard
CPM, or cost per mille impressions, is the universal metric. If a platform charges a $30 CPM, you pay that amount every time your ad is shown one thousand times. CPMs vary wildly: from $10 for basic inventory to over $50 for premium content with advanced targeting. As Strateguspoints out, CPMs increase when you seek more specific targeting.
Programmatic vs. direct buying
Direct buying involves negotiating with each platform, which is time-consuming and requires large budgets. Programmatic buying automates the process and allows you to access multiple platforms from a single location. Platforms like Masha eliminate intermediaries and offer access to premium CTV inventory with transparent pricing, without hidden fees or lengthy negotiations.
Factors that determine your ad pricing
Audience targeting and demographics
Trying to reach women aged 25 to 34 in Monterrey who are interested in fitness will cost more than broad targeting. Precision comes at a price, but it also improves your return. The first-party data managed by streaming platforms allows for targeting that broadcast TV could never offer.
Seasonality and demand
Buen Fin, Christmas, and sporting events drive CPMs up. If your campaign can wait, January and February offer significantly lower prices. Planning ahead allows you to negotiate better rates or take advantage of available inventory during the off-season.
Estimated costs by leading platform
Advertising on Netflix, Disney+, and Prime Video
Netflix saw a 32% drop in its CPM during 2024, averaging $37.02 according to The Market BoxxDisney+ has similar ranges, while Prime Video, with 82% of its subscribers on ad-supported plans, offers massive reach. Minimum investment requirements on these platforms are typically high for direct buys.
Investing in YouTube Ads and Twitch
YouTube allows you to start with modest budgets, from a few hundred pesos a day. CPMs vary between $5 and $20 depending on the format. Twitch attracts younger audiences with competitive CPMs, although inventory is more limited.
Spotify and audio streaming platforms
Audio streaming CPMs range from $15 to $25. Spotify Ads allows for campaigns starting at $250, making it accessible for mid-sized budgets. The advantage: less visual competition and users wearing headphones, attentive to your message.
How to optimize your budget and measure return on investment
Strategies to maximize reach with low budgets
According to PwC, AVOD advertising revenue will grow at a compound annual rate of 14.1% through 2028. This means more available inventory and competitive pricing. To maximize your investment:
- Focus on specific time slots instead of 24/7 coverage
- Test different creatives with small budgets before scaling
- Use self-service platforms that eliminate intermediaries
Essential KPIs to evaluate campaign success
The view-through rate measures how many viewers watched your ad in its entirety. The cost per completed view tells you exactly how much you are paying for each real impact. Attributed conversions connect your investment to business results. Masha offers real-time metrics from its platform, allowing you to adjust campaigns on the fly without waiting for weekly reports.
Streaming advertising is no longer exclusive to big brands. If you want to launch your first connected TV campaign without long-term contracts or high minimums, meet Masha and get started from $0.01 per view with campaigns you can activate in minutes.
