, a patient-centric approach, AI-powered data-driven decision solutions, and 

 transform how healthcare brands connect with patients.

Pharma marketing is shifting toward a personalized, data-driven approach. HIPAA-compliant targeting allows marketers to use anonymized data responsibly, delivering tailored content without compromising patient privacy. Meanwhile, downstream outcome measurement tracks how campaigns impact patient behavior and health outcomes, clarifying ROI (

). Real-world data (RWD) from health records and insurance claims further refine targeting, providing deep insights into patient journeys. These trends underscore an industry focused on meaningful patient connections within strict regulatory frameworks.

To keep up with these trends, sophisticated healthcare marketing software tools that enable precision, compliance, and personalization are the most important components of a successful strategy. The right software integrates AI, data insights, and cross-channel capabilities so marketers can navigate the ad landscape quickly and effectively.

Linear TV's staying power in pharma marketing

While CTV is growing in popularity — according to a Leichtman Research Group report, 87% of US TV households have at least one CTV device, at the same time, according to 

, linear still captures 43% of pharma's ad spend and remains pharma's bread and butter. Why? Linear TV offers a scale and reach that no other medium can match, especially for an industry driven by broad awareness and extensive audience reach requirements. According to the 

, In 2022, pharma companies invested $5.5 billion in linear TV product ads. A significant portion of this was tied to major cultural events, such as the Beijing Winter Olympics, where $165 million was spent on pharmaceutical ads alone.

For decades, traditional or linear TV has allowed life sciences companies to meet the industry recommendation of reaching at least 10% of their targetable population. The approach has worked well enough—casting a wide net ensured high visibility for brands in a way digital channels couldn't match at scale. However, as younger audiences move to digital, the dominance of linear TV is finally starting to wane. Even so, it still commands the lion's share of pharma budgets and delivers high reach, especially among older demographics who watch more linear TV than streaming.

The next logical step? It's time to apply the precision of data-driven 

 targeting to linear TV. The capabilities that have redefined digital and connected TV advertising—hyper-focused segmentation, AI-powered insights, and real-time measurement—are precisely what linear TV needs to maximize its potential for pharmaceutical advertisers.

The shift: applying data precision to linear TV

The days of running linear campaigns based solely on surveys and last year’s statistics are over. Today, advertisers operate with data-informed precision, tailoring strategies based on real-time insights rather than outdated assumptions. However, there are still important distinctions between targeting on streaming platforms and traditional linear TV.

In CTV, targeting is as precise as spearfishing—highly focused, efficiently reaching exactly the intended type of viewer. Data-driven linear, in contrast, leverages digital targeting data to strategically position ads where they’re most likely to reach relevant audiences at scale. It’s like casting a well-informed net in the best waters, capturing many desired audiences while bringing in a broader mix.

This evolution could mean capturing more relevant audiences on linear TV, minimizing waste, and driving more measurable outcomes.

How can DSP be applied in pharmaceutical advertising

 (DSP) is a software advertisers use to purchase digital ad space across multiple networks and platforms in an automated way. Here’s how DSPs can be explicitly applied in the context of pharma advertising:

 The Health Insurance Portability and Accountability Act (HIPAA) safeguards sensitive patient health information. It ensures patient data is used securely and privacy-protected while delivering relevant ads to the right audiences. DSP enables pharma brands to target specific patient demographics in a privacy-compliant way, ensuring that data used for audience targeting meets HIPAA and other regulatory standards as DPPs work mostly with anonymized data sources.

Audience segmentation for health conditions.

 DSPs allow advanced audience segmentation based on anonymized data about specific health conditions or behaviors. By partnering with healthcare data providers (like Crossix or DeepIntent, for example), DSPs can target audiences likely to be interested in a particular treatment or health condition, which is especially useful for reaching niche patient groups on CTV.

Frequency management and avoiding ad fatigue.

 DSPs help pharma marketers control ad frequency across multiple TV platforms, ensuring viewers aren’t overexposed to a particular ad. This is crucial for maintaining engagement without causing viewer fatigue.

 DSPs enable sequential messaging, where ads are served in a specific order to guide viewers through a story or campaign journey. For pharma, this could mean starting with awareness messages about a condition, followed by ads about treatment options. This strategy helps build brand familiarity and provides viewers with relevant information in stages.

 DSPs can track KPIs unique to pharmaceutical brands, such as script or brand lift. They offer analytics on how effective the TV ad was in prompting actions like prescription fills and doctor visits, allowing pharmaceutical advertisers to measure the real-world impact of their campaigns and refine future strategies based on these insights.

Pharma audience data provider. How to choose?

Pharma audience data providers, or Data Management Platforms (DMPs), collect and analyze anonymized health data to help pharmaceutical advertisers reach specific patient and healthcare provider (HCP) segments with precision and privacy compliance. These providers aggregate data from sources like medical claims, electronic health records, and pharmacy transactions to create targetable segments based on conditions, treatment behaviors, and healthcare journeys. By offering insights into patient needs and HCP prescribing behaviors, they enable advertisers to craft relevant, impactful campaigns that meet strict privacy regulations like HIPAA. Integrated with DSPs and media platforms, these audience segments are used across channels, ensuring a seamless cross-channel approach. Marketers can select the tools and capabilities that best suit their campaign goals.

DeepIntent is a healthcare advertising platform that enables marketers to plan, activate, measure, and optimize campaigns targeting healthcare professionals (HCPs) and direct-to-consumer (DTC) audiences.

Access to clinically precise audience segments based on comprehensive healthcare datasets.

Integration with connected TV (CTV) viewership data to enhance targeting.

Ability to reach over 75% of addressable CTV households with curated inventory from major programmers.

Provides daily reporting on HCP audience performance, allowing for real-time adjustments.

Veeva Crossix specializes in targeted TV advertising for health brands, combining traditional and digital targeting precision.

Engage health audiences through cable and satellite with data-driven linear TV buys.

Reduce media waste by activating campaigns with smaller budgets while still reaching relevant audiences.

Utilize audience segments that are compliant with industry regulations.

Effectv, part of Comcast Advertising, offers a suite of data-driven advertising solutions tailored for the healthcare sector.

Leverages first-party Comcast data combined with trusted third-party data to segment audiences effectively.

Provides multiscreen delivery options across linear TV, streaming, and video on demand.

Offers detailed reporting metrics to assess campaign performance and ROI.

Choozle provides digital advertising solutions specifically designed for the healthcare industry, focusing on data-driven strategies.

Allows advertisers to create custom audience segments based on health-related criteria.

Manages customer data while ensuring compliance with regulations like HIPAA.

Optimizes targeting for patient and consumer groups using comprehensive datasets.

Pharma-specific measurement providers. What value do they bring?

Pharma-specific measurement providers deliver essential insights that go beyond standard ad metrics, focusing on outcomes critical to healthcare. These providers assess the direct impact of campaigns on prescription lift, patient engagement, and healthcare provider (HCP) awareness, offering pharma brands a clear view of how effectively their messaging drives treatment adoption and education. These platforms provide a long-term perspective on campaign success by tracking downstream outcomes like follow-up visits and treatment adherence. Integrated with real-world data (RWD) from sources such as electronic health records and insurance claims, they connect ad exposure to actual health outcomes, creating a comprehensive picture of effectiveness. Additionally, pharma-specific measurement providers operate within HIPAA and privacy standards, ensuring that all data handling complies with regulatory requirements.

Examples of pharma-specific measurement providers

They offer insights into market access, patient outcomes, and promotional effectiveness, helping pharma companies optimize their marketing strategies.

Their solutions include measuring TV ad effectiveness and understanding audience engagement, which is crucial for compliance and optimizing marketing spend.

Their products include customer relationship management (CRM) solutions that help pharma companies track interactions with healthcare providers and measure the impact of marketing efforts.

They offer healthcare-specific measurement tools that assess brand performance, advertising effectiveness, and consumer behavior in the pharmaceutical sector.

Supply-Side Platforms. Why do marketers need SSP?

 (SSPs) play a vital role in pharma marketing by enabling streamlined, programmatic ad placement across HCP-focused digital channels, including medical journals, educational sites, and association platforms.

SSPs offer robust ad inventory management, allowing pharma brands to manage and distribute ads efficiently across multiple outlets. They also provide analytics on user behavior and engagement through real-time data insights, helping marketers understand which channels resonate most with healthcare professionals. SSPs’ programmatic capabilities and machine learning optimize ad performance, ensuring ads reach the right audience segments—HCPs or patients—at the right moment with minimal waste.

Connected TV (CTV) networks and apps are becoming increasingly important for pharmaceutical marketers as they seek to effectively engage healthcare professionals (HCPs) and patients.

 offer programmatic ad inventory that allows pharma brands to deliver ads based on demographic, behavioral, and health-related data insights, all within HIPAA-compliant frameworks. CTV networks also support cross-channel alignment, allowing pharma marketers to extend audience targeting capabilities across linear TV and digital, maximizing reach to relevant patients and healthcare providers (HCPs).

To choose the right CTV network for a pharma ad, prioritize HIPAA-compliant platforms that offer robust targeting, cross-channel integration, audience-aligned reach, flexible ad formats, and detailed analytics to ensure effective and measurable campaign results.

Data-driven approach for pharma marketing. How does Simulmedia do this

 empowers pharma marketers to make linear TV campaigns as targeted and efficient as digital. It starts with integrating TV viewing data, allowing the platform to directly apply the same audience segments used in digital campaigns to linear TV. This cross-channel alignment means pharma brands can reach patients and healthcare providers on a broad scale with precision traditionally reserved for digital channels.

Using AI-driven audience forecasting, Simulmedia analyzes viewership patterns to predict where specific patient populations will be watching. This approach enables pharma brands to deliver relevant messages to target audiences based on anonymized health insights, meeting the right people at the right time.

By bridging the gap between traditional linear TV and connected TV (CTV), Simulmedia creates a seamless experience that extends digital targeting capabilities across both platforms. While linear TV doesn’t offer real-time insights, Simulmedia’s use of ACR data delivers early results, and its quick post-log processing enables more agile in-campaign adjustments. This adaptability brings a new level of responsiveness to linear TV, enhancing its impact in ways once only possible with digital.

Navigate CTV's biggest challenges, from fragmentation to privacy and ad fatigue. Discover strategic solutions for effective, data-driven advertising 

Pharma Ads Meet Tech. Overview of the Healthcare Marketing and Advertisement Software Ecosystem

TV advertising seems to be veiled in mystery and myth. Lost in a Mad Men-esque aura, the general public often believes that it is only for big companies with infinite budgets—which they can afford to lose on an (allegedly) dying channel.

TV ads are also (allegedly) expensive to produce and (also allegedly) expensive to put on screen. They are (also, you guessed it, allegedly) hard to measure, too!

advertising is a very valid and even tempting option for many brands (large and small.) And it is definitely not dying (for a long, long time from now on.)

Here's what you need to know about advertising on TV.

Most people think TV advertising is expensive -- reserved only for large, multinational companies with deep pockets. However, TV advertising can also be affordable for smaller businesses, especially if they buy in the scatter market. It has many advantages that brands cannot ignore.

TV advertisements have high production value and can leave a lasting impression on viewers. With visually appealing graphics, catchy jingles, and creative storytelling, TV ads can capture audiences' attention and create a strong brand image that helps businesses stand out in a crowded market and leave a lasting impact on potential customers.

This is beyond assumption at this point. It’s an empirical finding most people have experienced (perhaps, even you?). YouTube, TikTok, and other social media have been the 

 advertising channels for the last decade (largely due to the high level of targeting detail and measurability). However, ads on these channels only tend to have 1-2 seconds to get an audience’s attention – after that, the next screen loads in a seemingly infinite scroll.

TV ads are different. Because our brains have already created use patterns, we are less likely to change channels (the equivalent of the ubiquitous digital “scroll”). As such, TV ads have more time to create 

 (which means your brain resonates – and makes it more likely for you to buy the product.)

Sure, TV ads have gained a bad rap. But the right strategy (e.g., pairing TV ads with digital advertising) can make your brand a winner. In our experience with our clients, there is a 

 in search traffic minutes after airing an ad. More specifically, once they see an ad on linear TV, people will search for the products that interest them – showing the ad did its job.


 than other forms of advertising, such as online ads or influencer marketing. According to Nielsen, 63% of people see TV ads as more trustworthy than other media – but other studies show similar results, to varying degrees.

The reason behind this is rather easy to understand: linear TV ads are often associated with premium content that shows up on already recognized brand name channels. In other words, most consumers perceive TV ads, especially ads airing on national TV, as hard/expensive to produce and, ergo, more credible. As a result, viewers are more likely to trust and believe in the products or services advertised on TV.

TV advertisements provide ample time for businesses to tell their story and showcase their brand identity. With 30-second or even 60-second spots, businesses can create a compelling narrative that connects with audiences emotionally and establishes an emotional connection with the brand. This can help businesses build brand loyalty and establish a strong brand image in the minds of consumers.

Contrary to popular belief, TV advertising can be measured for its effectiveness -- especially in scatter TV (see below), but not only. Good technology can help you target and measure the success of your campaign, allowing you to make data-driven decisions for future advertisements. This not only helps businesses determine the return on investment (ROI) but also provides insights into consumer behavior and preferences to actively optimize their buy more agilely.

TV has a wide reach and is viewed by millions of people daily, catering to a vast audience with diverse demographics. Despite fragmentation, it is still a mass-reach channel, which makes it an effective medium for reaching a large audience quickly. There are many ways to achieve this scaled reach:

Businesses could target specific demographics based on the time slot and endemic channel chosen for the advertisement. For example, a destination marketer can advertise on a travel channel during the weekend, when budding travelers may be watching TV while thinking about their next holiday. We often caution advertisers to be guided by the data since what seems intuitive may not actually pan out. For instance, a pet store brand may consider Animal Planet “endemic” when, in fact, it performed poorly with pet owners.

Businesses could take a more audience-centric approach and leverage big data and machine learning to identify the most efficient times and venues to advertise on TV to achieve massive reach. Simulmedia advocates this approach.

TV helps brands leverage the medium's inherent credibility and engaging storytelling capabilities to amplify their brand presence to a large strategic audience significantly.

Advertising on TV was a complex process. It still is, but software like Simulmedia makes it easier with a media buying platform that simplifies the process, provides the data you need, and helps you find the best advertising options for your business, audience, and budget.

To understand how TV advertising works, we must examine it from two perspectives: the different TV ad-buying markets and the different methods.

In linear TV advertising, there are three main types of markets you can choose from:

 advertising market is where advertisers can purchase TV ad slots months before the broadcasting season. This market allows them to lock in premium time slots at great CPMs before anyone else gets them. In return, the network receives a spend commitment for the year from the advertiser. It is particularly suitable for companies looking to secure a strategic position in high-demand periods.

 advertising market allows advertisers to buy TV ad slots closer to the airing date, from a few months to a week before. This provides flexibility for companies that need to adapt their marketing strategy quickly. This market is ideal for businesses looking for opportunities outside the upfront market or those with more immediate advertising needs.

 involves purchasing unsold TV ad slots at a reduced price, often closer to the airing date. They are not guaranteed to run: if all the spots are taken up by prioritized upfront and scatter buys, then the remnant ad won’t air (and the brand doesn’t have to pay).

This approach offers businesses a cost-effective opportunity to access premium TV advertising spaces that would otherwise be out of reach due to budget constraints. However, it’s also likely that the most coveted spots are taken, and remnant ads sometimes land in the least desirable places, such as overnight. During periods of high demand, remnant inventory may get crowded out by upfront and scatter commitments. Remnant ads are also called "direct response advertising" and are associated with infomercials.

There are two main methods for buying TV advertisements:

Negotiated commitments in the upfront market

This method typically involves direct engagement between advertisers and broadcasters or their representatives, where terms, prices, and slots are discussed and agreed upon. This traditional approach offers personalized deals but requires significant planning and negotiation skills (on both ends of the deal.)

Direct insertion orders for scatter and direct response

Direct insertion orders (IOs) refer to purchasing TV ad slots through a TV sales rep. In theory, it works well. In practice, if you're a smaller buyer, you might find it hard to get the best slots or prices unless you're willing to pay premium rates. Not to mention it will sometimes be difficult to get the sales rep's attention in the first place if you aren’t a recognized brand.

Simulmedia – programmatic-like buying in the scatter market

There is a third way, unique to how Simulmedia buys! Simulmedia provides media buying services that are a cut above how everyone else in the industry buys. Simulmedia has built integrations with over 150+ linear TV networks which allows us to cherry-pick the spots in the scatter market where unreached members of brands’ strategic audience can be found.

Once the spots are chosen, the order management process is fully automated so that brands can get on the air in as fast as a week. For our digital readers, it’s as close as you can get to programmatic buying on linear TV!

Whether you're looking for cable or broadcast TV advertising options, Simulmedia can help you run an efficient and effective campaign that meets your business goals. So don't be afraid to 

If you decide to buy ads, you can do it yourself by contacting your local/ national provider (though it may be difficult to get the bigger players’ attention unless you’re a well-recognized brand name) or with the help of an agency.

Local stations (broadcast network affiliates) and cable providers are organized in metro areas or 

 (called "designated marketing areas" as defined by Nielsen). This allows brands to have a range of ad spots to choose from across all dayparts, especially during times designated for local sports and news.

To buy national ad spots, a brand or agency needs to decide which ad market they want to buy in – the upfront, scatter, or direct response market. Because of viewer fragmentation, except for important tentpoles and sports events, buying national TV ad space through the scatter and direct response markets has become more accessible to smaller brands and independent agencies.

Working with an agency can make the process more manageable. But you should know that running a TV advertising campaign through an agency is not cheap. The big holding companies will require a significant spending commitment, so smaller, independent media agencies may be the only more affordable option for smaller brands.

 level of fine-tuning and experimentation with buying ad spots. You don’t have to be alone in this – decades of experience can teach you a lot, so you don’t have to feel like you’re starting from Ground Zero.

Most marketers know that advertising on TV is expensive. It can be. But so can advertising on YouTube, Google, Instagram, or via any of the display/ programmatic networks online. The key is to differentiate between rates and costs. For example, the CPM rates of linear TV can often be lower than the CPM rates on Facebook (P2+ rates on linear TV currently hover at around $2, whereas the 

But if the spot you’re buying on linear TV reaches millions of households, the low CPM rates in linear TV may still translate to high costs (with high reach). And if the higher CPM rates on a niche-targeted Facebook campaign only reach a few thousand people, then you may end up with lower costs (but also lower reach).

TV advertising rates can vary significantly depending on the type of market, location, time slot, and network used for your campaign. For instance, national ads during prime time slots or live events on major networks like Fox or ABC might have high rates, and because they reach large audiences, they can also have high spot costs.

On the other hand, scatter TV can also have higher rates than Upfront ads (because advertisers often make huge upfront commitments in exchange for discounted CPM rates). However, scatter ads still end up being less expensive (because you can buy spots on longer tail networks, which are cheaper, but still enable you to reach your audience.)

 the expertise you need to advertise on TV, measure your performance accurately, and help you navigate what might seem, from afar, a complex environment. From handling fragmentation to helping you adapt your media campaigns on the go, we have solutions for you.

 and learn more about the options we offer at Simulmedia. We help customers like you overcome the challenges of TV ad buying and create successful campaigns they can scale to drive real, measurable results. Don't miss out on the opportunity to reach a wide audience and make an impact through TV advertising. Let us help you take your business to the next level!

Discover how to advertise on TV effectively, reach your target audience, and drive real results!

How to Advertise on TV: A Practical Guide for Brands

 has been the gold standard for TV ratings for decades, guiding media buyers and advertisers in tracking audience performance. However, 

 Global’s recent decision to move away from Nielsen in favor of VideoAmp signals a significant shift in TV ad measurement—and it could reshape the industry.

While TV networks have explored alternative measurement providers like iSpot, Comscore, and VideoAmp, these tools have mostly been used alongside Nielsen. Paramount’s decision, however, represents one of the first instances where a major network has chosen to operate without Nielsen—at least for now fully. This could set the stage for alternative measurement tools to compete more directly with Nielsen, offering networks and advertisers more flexibility in how they track and value audience engagement.

Paramount’s decision came after contract negotiations with Nielsen broke down over pricing issues. John Halley, Paramount’s Chief Advertising Officer, explained that Nielsen’s costs had "quintupled over significant parts of [their] business," making the current pricing model unsustainable. This echoes a broader sentiment across the industry: many networks have grown frustrated with the rising costs and perceived limitations of Nielsen’s services.

While Paramount has expressed a willingness to resolve the dispute and potentially return to Nielsen, their immediate focus is on VideoAmp for viewership data. This move highlights the industry's growing appetite for more cost-effective, flexible measurement solutions.

The broader implications for TV measurement

Paramount’s decision underscores two key trends shaping the future of TV measurement:

A new competitive landscape for measurement currencies:

This shift doesn’t suggest that Nielsen will cease to be a major currency, but it does lay the groundwork for alternative measurements to be considered true competitors. If Paramount successfully conducts business without Nielsen, it could inspire other networks to follow suit, accelerating the adoption of alternative currencies like VideoAmp. As these tools become more prominent, they could offer more tailored insights, giving advertisers a clearer picture of audience engagement and ad performance.

Pressure for cost-effective solutions and innovation:

Paramount’s frustration with Nielsen isn’t unique. Other networks may face similar pressures to seek alternative tools that provide more granular insights at a lower cost. As the industry evolves, networks and advertisers may gravitate toward measurement solutions that offer more flexibility and the ability to fine-tune campaigns in real-time.

For media buyers, Paramount’s break from Nielsen is an important reminder that the measurement landscape is evolving. While Nielsen remains the dominant player, alternative currencies are gaining traction, and buyers will likely encounter a mix of measurement tools in the near future.

Staying informed about these shifts will be crucial, as buyers may need to adjust their strategies to account for multiple measurement standards. Tools like VideoAmp offer the potential for more detailed, flexible insights, helping media buyers optimize ad spend and better understand viewer behavior across platforms.

Paramount’s move away from Nielsen doesn’t necessarily mark the end of Nielsen’s reign, but it does highlight the growing momentum behind alternative currencies. As more networks explore these options, the industry could see a more competitive, diverse measurement landscape where Nielsen is no longer the default choice.

This shift is an opportunity for media buyers. As alternative measurement tools continue to develop and compete with Nielsen, they could offer new ways to track and optimize campaigns, leading to better outcomes and a more nuanced understanding of audience engagement.

Ultimately, while Nielsen’s influence will likely continue, Paramount’s decision signals that the future of TV measurement may be more dynamic than ever before. Adapting to these changes and staying open to alternative tools will be key to delivering data-driven results in this new era of TV advertising.

Paramount's break from Nielsen highlights rising costs and growing demand for more flexible, cost-effective TV measurement tools

A Rise of Alternative Currencies Era: Paramount's Break with Nielsen and What It Means for the Industry

2024 Holiday Season Forecast: Cutting-Edge TV Ad Strategies, AI Power, and Pro Tips

Back to basics. Let's kick off our guide with a quick refresher on what CPM is.

Cost per thousand, or Cost per Mille (CPM), denotes the price of 1,000 advertisement impressions. In TV advertising, one impression refers to one individual exposure to an advertisement. The formula for calculating CPM is:

CPM is calculated using the formula: (Advertising cost / Impressions generated) * 1000.

Why do we care about CPM? It is used to assess the ad cost across various television networks and programs. Typically, expressed in dollars, CPM represents the cost of running an ad on a specific program or network for a given period. For a comprehensive understanding of CPM in advertising, you can refer to our 

TV CPMs: Understanding the Cost of Television Advertising

Here, we'll dive deeper into the factors that influence this metric and how to navigate these elements to maximize the efficiency of your TV ad campaigns. CPMs are highly dynamic, affected by variables such as the advertiser base, seasonality, and whether the buy is upfront or scatter.

In a perfect world, we could set the perfect TV ad campaign once and maintain the lowest CPM indefinitely. However, reality dictates otherwise. CPMs fluctuate constantly due to factors like advertiser demand, seasonal trends, market dynamics, etc. Our primary goal is to help you steer through this ever-changing landscape effectively.

Audience size and demographics affect CPM in TV advertising

Larger audiences and targeted demographics lead to higher CPMs due to demand, scarcity, and advertising reach effectiveness. Understanding these dynamics is crucial for advertisers to optimize their campaigns and budget allocations. Competition for smaller audiences is higher, making them more expensive to reach, while larger audiences are cheaper. Consequently, CPM for smaller audiences is higher, and for larger audiences, it is lower.

If your brand’s potential customers are baby boomers, the CPM for your campaign would be lower than if you were trying to reach the 18-25 group on traditional TV.

Here are some examples of CPM for different audiences - 8-25 and 55+, over a period from March 2024 to May 2024. As you can see, linear TV CPMs for 55+ are significantly lower and more stable than 18-25 because they are still relatively plentiful in traditional TV.

The next chart shows us the average CPM for the 18-25 and 55+ age groups across four different genres: Drama, News, Reality, and Sports. The CPM for the 18-25 group is significantly higher in all genres, especially in News, where it reaches close to $800. The CPM for the 55+ group is minimal across all genres.

Programs with the largest audiences typically command the highest CPMs. Prime-time shows, for instance, often boast the highest CPMs due to their broad reach. These shows, airing during the coveted evening hours when most people are tuned in, attract a vast and diverse audience.

The scarcity of ad slots during these highly-rated programs further intensifies competition among advertisers, driving up CPMs even more, especially in the scatter market. Here, last-minute ad buys become a frenzy of competition, with brands vying for those few remaining spots. This dynamic creates a premium environment where only the highest bidders secure their place in front of millions of viewers.

So be ready that during the season premiere of a highly-anticipated show, the season finale of a extremely popular series, Presidential debates, or especially the Super Bowl, CPM will be sky-high.

Here is an example of how the CPM changed due to the May 2024 Presidential Debate.

On this chart, we indexed the previous CPMs to the CPMs of the Presidential Debate and contrasted the previous two months’ CPM relative to it. As you can see from the chart below, CPMs prior to the debate were significantly lower – coming in at x% one month below, and y% two months below. Tentpole events like the Presidential Debate give networks (like CNN) the opportunity to charge significantly higher CPMs for an event that would attract a larger audience versus the status quo.

During festive seasons, such as Thanksgiving and Christmas, CPMs typically rise due to increased consumer spending and heightened competition for ad placements. Especially high CPM would be driven by high advertising demand from such categories as retail, fashion, electronics, travel, and, counter-intuitively, financial services - people might open new accounts or take out loans during this time. Even car purchases see a boost.

Traditionally, ad position within a program or break does not significantly impact the CPM. The position of an ad, whether at the beginning, middle, or end of a break, typically does not alter the cost per thousand impressions. However, potential influences can arise with sponsorships or special placements. For example, if an ad is part of a sponsorship package or strategically placed during a high-visibility moment, it might affect the CPM. Even then, the impact on CPM is not always guaranteed, as it depends on the specific terms of the sponsorship and the perceived value of the placement.

Common challenges in managing CPM for TV campaigns

 CPM is typically negotiated based on a network's sales estimates, which are often inflated.

Networks might need to use Audience Deficiency Units (ADUs) to meet guaranteed CPMs. ADUs are free advertising slots given to advertisers to compensate for viewership shortfalls during the contract period.

Popular shows and peak viewing times have limited ad inventory.

This scarcity drives up CPMs, making it tough to secure placements at reasonable rates.

Advertisers compete fiercely for slots during high-profile events like the Super Bowl.

This competition can significantly raise CPMs, straining the budgets of smaller advertisers.

Traditional linear TV relies on metrics like Nielsen ratings, which may not accurately reflect real-time audience reach beyond basic demographics (age and gender). That is why specific tool, like Simulmedia’s TV+ platform, which helps advertisers work with audiences, is needed

This inconsistency can complicate the assessment of CPM effectiveness.

Broader economic factors can influence advertising budgets and spending behavior.

Economic downturns may lead to reduced ad spending, affecting CPM rates and availability.

While not directly a part of CPM, ad quality and relevance significantly impact its effectiveness.

High-quality, relevant ads are more effective in driving engagement and achieving lower CPMs. Advertisers should continuously produce content that resonates with audiences.

Using data analytics to improve CPM Rates

Utilizing data analytics effectively can significantly enhance CPM rates by focusing on two key strategies:

Through data analysis, advertisers can pinpoint underutilized segments of inventory, such as specific networks or dayparts, where there is low demand but a high concentration of the target audience. These segments often present more cost-effective opportunities for ad placement, as they tend to have lower CPMs compared to highly sought-after slots. By strategically placing ads in these underutilized areas, advertisers can reduce their overall CPM and maximize the value of their media spend.

Targeting high-concentration audience segments

Data analytics also helps in identifying audience segments that are densely populated within certain inventory buckets. Targeting these high-concentration segments ensures that ads reach a large portion of the desired demographic without the premium costs associated with more competitive slots. This targeted approach not only improves ad efficiency but also enhances the effectiveness of the campaign by aligning ad placements with audience behavior and preferences.

Generally, a higher number of impressions should lead to a better ROI, provided that you are effectively targeting the right audience.

Higher CPMs can potentially yield better ROI when the ads effectively engage and resonate with the target demographic. Advertisers must ensure that the CPM costs align with the expected increase in sales or brand awareness. For instance, a strategically placed ad during a high-demand program can significantly boost returns, justifying the higher CPM.

However, measuring ROI from TV campaigns presents unique challenges. Unlike digital advertising, where clicks and conversions are directly trackable, TV advertising requires alternative methods for attribution. To address this, advertisers can use statistics provided by TV networks or leverage platforms like Simulmedia TV+, which aggregates data from various providers. This approach helps in assessing the impact of TV ads more accurately and linking them to sales increases or improved brand metrics.

In this guide, we’ve explored the complexities of CPM (Cost Per Thousand Impressions) in TV advertising, shedding light on its role and implications for effective campaign management. Here are the key points discussed:

 Smaller audeinces and more targeting generally lead to higher CPMs due to limited viewership (makes them harder to find), increased demand, and competition. Broader audiences, while less expensive to reach, often come with a higher CPM.

 The distinction between upfront and scatter markets affects CPM rates. Upfront buys typically have lower CPMs compared to scatter buys, which are more expensive due to limited inventory. However, scatter works better for your timing and provides marketers with a greater degree of control to manage their spend

 High-demand programs and peak viewing seasons drive up CPM rates, making it essential for advertisers to plan strategically to balance costs and visibility.

 Traditionally, the position of an ad within a program does not significantly impact CPM, except in cases of sponsorships or special placements, which might offer some influence on costs.

 Advertisers face various challenges, including inflated CPM estimates, competition for limited ad slots, inconsistent measurement metrics, and broader economic factors that affect budget and CPM rates.

 Data-driven strategies, such as identifying underutilized inventory and targeting high-concentration audience segments, can improve CPM rates and enhance campaign efficiency.

The industry's fixation on CPM vs. cost-per-reach

The advertising industry often fixates on CPM as a primary metric, but this approach may not always align with the broader goal of maximizing reach and engagement. CPM focuses on the cost of impressions, but a more comprehensive perspective would be to emphasize cost-per-reach. Cost-per-reach evaluates the cost of reaching a unique individual, providing a clearer picture of ad effectiveness in connecting with the target audience.

Argument for a greater emphasis on cost-per-reach

Shifting focus to cost-per-reach can offer a more nuanced understanding of ad performance. By evaluating how efficiently an ad reaches unique viewers, advertisers can better assess the true impact of their campaigns and optimize their budgets accordingly. After all, the life in likelihood of a consumer to take action is greatest when moving them from 0 exposures to 1 exposure – you can expect far greater exposure there than moving them from 6 exposures to 7. This reach-first approach ensures that advertising dollars are spent effectively, reaching as many potential customers as possible while avoiding unnecessary overspending on high CPM slots that do not significantly contribute to overall reach.

In summary, while CPM remains a crucial metric in TV advertising, integrating cost-per-reach into your evaluation strategy can provide a more holistic view of campaign effectiveness and enhance overall ROI.

Discover key factors influencing TV Advertising CPM and how to optimize your campaigns with data analytics, balancing cost-per-reach and CPM for better ROI.

Mastering CPM: How Audience Demographics and Ad Placement Influence TV Advertising Costs

A version of this was originally featured on ANA.

The general perception that traditional TV viewing is in decline overlooks a key point that marketers need to pay attention to: far from being obsolete, linear TV advertising is actually reaching new audiences through connected TV (CTV) platforms.

Linear TV is no longer a single, steady format; it has grown and changed, with linear TV advertising effectively merging into digital experiences due to the proliferation of audience viewing options, particularly around linear-like digital consumption. For marketers, this evolution means that to thrive in the future world of TV is not just about being proficient in the 

 space but also in the nuances of linear TV. Brands will need to know how to tap into TV's fragmented audience effectively. Ignoring this interconnectedness risks missing out on a significant segment of the TV audience, because a majority of ad opportunities coming through these linear-like streaming experiences are fulfilled through the linear TV pipes, with only a small portion fulfilled through the CTV pipes.

But what exactly constitutes linear and non-linear in this new landscape? Is it the device, the programming content, the consumer experience, or the ability to run addressable advertising? To find the answer, marketers need an understanding of how the same content is distributed differently across platforms.

In the early stages of television history, audiences relied on broadcast TV, accessing live linear channels through over-the-air transmissions and experiencing linear content in a scheduled manner. The introduction of cable and satellite subscriptions brought a new dimension, with content transmitted through dedicated boxes, further exploding consumer choice on traditional TV.

The evolution of the TV industry saw the emergence of streaming platforms like TV Everywhere (

), blurring the distinction between traditional linear TV and digital streaming. With the introduction of virtual multichannel video programming distributors (

) and free ad-supported streaming television (

), these boundaries have further blurred, creating a complex TV environment.

Understanding the terminology is critical. TVE enables streaming of linear content on internet-connected devices, while vMVPDs (e.g., YouTube TV, Sling TV, Hulu+Live TV) combine linear and streaming. FAST offers free streaming channels beyond traditional systems. However, there needs to be more consistency in how TVE, vMVPDs, and FAST are classified, often grouped as streaming despite delivering live linear content.

FAST encompasses free streaming apps replicating traditional TV (i.e., FAST apps) such as Pluto TV, Tubi, Roku Channel, and Plex, among others, and time-scheduled channels within streaming services (i.e., FAST channels) that are typically comprised of shows from older content libraries.

An example of this complexity is the difference between the NBC App, a TVE service requiring a traditional TV subscription, and Peacock, a streaming service that doesn't need a standard TV subscription but offers its service using subscription and ad-supported models. Both provide some shows accessible as video-on-demand (VOD) but differ in the live scheduled programming that's available. For instance, Peacock doesn't provide the same live, linear channel feeds found on cable or satellite TV but instead offers curated 24/7 show feeds as FAST channels, such as the single-show FAST channel dedicated to the long-running 1980s program 

, contrasting with the live-streaming feature of NBC App that includes traditional channels such as Bravo and SYFY. While TVE apps like NBC App started as a way for cable and satellite subscribers to access content while traveling, it also became a way for cord-cutters to access live linear programming by using shared passwords of friends and family who are subscribers.

The Interconnected Ecosystem of Ad Consumption

How to navigate the interconnected realms of streaming and linear TV advertising

Join the Waitlist for Skybeam: Be First to Access Our Self-Service CTV Tool!

How to Build a Show-Stopping TV Creative Ad Strategy