Here’s how much advertising costs on Netflix, Max, Disney, and others right now as streaming ad prices fall
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- Streaming TV ad prices have fallen as increased supply meets a weak ad market.
- One buyer called the environment a “Black Friday of deals.”
- Here’s what the top streamers are charging now, according to top ad buyers.
A year ago, the launch of ad-supported streamers from Netflix and Disney+ came with high prices for advertisers willing to pay top dollar to reach consumers watching original, polished entertainment.
Streaming ad prices have since dropped as more streamers have released a flood of new ad space, while advertiser demand remains low due to an uncertain economy. The number of ads per hour on streaming services such as Hulu and Disney+ has also increased, adding to the supply. (You can find a list of streaming TV ad prices from last year here.)
Since their launch, Netflix and Disney+ have also reduced their ad prices. Buyers previously told Business Insider that Netflix has reduced its rates by about 30% from its initial CPM rate of up to $65. CPMs, or cost per mille, are the fees that advertisers pay per thousand views of their advertisements.
Ads on Prime Video will be available early next year, and Amazon has promised to dump a TV-sized audience of 115 million monthly US users into the streaming video ad supply. Unlike Netflix’s first forays into advertising, consumers must opt out and pay an additional $2.99 if they do not want to see Prime Video ads, providing advertisers with a large audience to target.
All of this has resulted in a widespread discounting environment that one top advertising buyer compared to a “Black Friday of deals.”
According to a second top ad buyer, streaming ad prices have dropped by 5% to 10% in the last year as more ad space has become available.
“There is absolutely inventory to buy,” the ad buyer stated.
The pricing market is still divided between newer streamers on the high end, such as Netflix, Disney+, and Max, which are known for prestige original content and light ad loads; more established options, such as Hulu and YouTube; and the fast-growing FASTs (free, ad-supported streaming TV channels), which are known for older TV shows and movies.
However, the market is leveling out as advertisers begin to spread their advertising dollars across new services and lower-cost FAST channels.
Business Insider polled buyers at seven different agencies to find out how much the top AVODs are charging right now. The agencies range in size from small independents to large holding companies that can negotiate lower rates based on volume.
We used the common ad-buying metric of CPM, and the dollar ranges cited reflect basic pricing, not deals, sponsorships, or other special ad products, or fees that advertisers typically pay to target and measure ads, which can add up to 30% to the cost.
Learn more about the prices at each streamer, which are listed alphabetically.