Calculate the CPM

OTT Advertising CPM Calculator

Calculate the cost per thousand impressions for your OTT and Connected TV campaigns. Enter your streaming ad spend and completed views to determine CPM rates across platforms like Hulu, Roku, Peacock, and Tubi — where premium, non-skippable video commands CPMs of $25–$40.

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Campaign Comparison

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Verdict

What Is OTT Advertising CPM?

OTT (Over-The-Top) Advertising CPM is the cost per 1,000 video ad impressions served on streaming platforms and Connected TV (CTV) devices. OTT ads play on services like Hulu, Peacock, Tubi, Pluto TV, and Roku Channel, delivering TV-quality, full-screen, non-skippable video to cord-cutters. Average OTT CPMs range from $25 to $40, making it the premium tier of digital advertising.

OTT CPM matters because streaming is rapidly absorbing linear TV budgets. As audiences shift from cable to streaming, advertisers need to understand the cost structure of reaching those viewers digitally. OTT's non-skippable, full-screen format delivers 95%+ video completion rates — far exceeding pre-roll web video — which justifies the higher CPM compared to other digital channels.

TV and video buyers use OTT CPM to compare streaming costs against traditional linear TV CPMs ($10–$30 for broadcast, $5–$15 for cable). Brand strategists evaluate OTT CPMs when building cross-screen reach plans that combine linear, OTT, and digital video. Media planners use this calculator to forecast campaign costs and negotiate competitive rates with streaming ad sales teams.

Streaming Spend OTT campaign budget
Completed Views Full video ad plays
OTT CPM Cost per 1,000 views

OTT Advertising CPM Formula

OTT CPM is calculated by dividing total streaming ad spend by the number of completed video views (impressions), then multiplying by 1,000. Because OTT ads are non-skippable, impressions and completed views are nearly identical, making the CPM calculation straightforward.

OTT CPM = (Streaming Ad Spend ÷ Completed Views) × 1,000

OTT CPM Playground

$500
$10 $10,000
100,000
1K 1M
OTT CPM $5.00 per 1,000 completed views

$500 ÷ 100,000 = 0.005 × 1,000 = $5.00

How to Calculate OTT Advertising CPM – Step by Step

Follow these steps to determine the CPM for your OTT/CTV advertising campaigns and compare costs across streaming platforms.

1

Compile OTT Ad Spend

Sum all costs for your OTT campaign, including media spend, platform fees, and any data-targeting surcharges. If buying through a DSP, include the DSP's technology fee. If buying direct from a streaming service, use the total invoice amount.

Example

A 30-day Hulu campaign cost $45,000 including media, data targeting, and platform fees.

2

Record Completed Video Views

Pull the total number of completed video ad views from your campaign report. OTT ads are typically non-skippable 15-second or 30-second spots, so completion rates are 95%+ and impressions closely match completed views.

Example

The campaign delivered 1,350,000 completed views across Hulu's ad-supported tier.

3

Calculate OTT CPM

Divide total spend by completed views and multiply by 1,000. The result is your effective OTT CPM — the cost for every thousand full, non-skippable video ad completions delivered to streaming viewers.

Example

($45,000 ÷ 1,350,000) × 1,000 = $33.33 CPM.

4

Benchmark Across Platforms

Compare your OTT CPM against platform-specific benchmarks: Hulu averages $28–$38, Peacock $25–$35, Roku Channel $20–$30, and FAST channels (Tubi, Pluto) $15–$25. Premium content and advanced targeting push CPMs toward the higher end.

Example

Your $33.33 Hulu CPM is mid-range for the platform, suggesting room to negotiate volume discounts for campaigns over $100K.

Frequently Asked Questions

What is the average CPM for OTT/CTV advertising?
OTT CPMs typically range from $25–$40 for premium platforms like Hulu and Peacock. FAST (Free Ad-Supported Streaming TV) channels like Tubi and Pluto TV offer lower CPMs of $15–$25. Advanced audience targeting and premium content placements push CPMs toward the higher end.
How does OTT CPM compare to linear TV CPM?
OTT CPMs ($25–$40) are generally higher than cable TV ($5–$15) but comparable to broadcast TV ($10–$30 for primetime). However, OTT offers precise targeting, real-time measurement, and 95%+ completion rates that linear TV cannot match, often making it more cost-efficient on a per-engaged-viewer basis.
Why are OTT ad CPMs so high?
OTT commands premium CPMs because of non-skippable, full-screen, TV-quality ad delivery to highly engaged viewers. Limited ad inventory on streaming platforms (3–5 minutes per hour vs. 15+ minutes on cable) creates scarcity, and advanced household-level targeting adds value that justifies the premium.
What is the difference between OTT and CTV advertising?
OTT refers to content delivered over the internet (bypassing cable/satellite), while CTV refers specifically to the devices used to watch — smart TVs, Roku, Fire TV, Apple TV, gaming consoles. In practice, the terms are used interchangeably for advertising purposes since ads run on CTV devices via OTT apps.
Can I target specific audiences with OTT ads?
Yes. OTT platforms offer targeting by demographics, interests, viewing behavior, geography (down to zip code), and even household-level data via partnerships with data providers like Experian and LiveRamp. Advanced targeting typically adds $2–$5 CPM surcharges on top of base rates.
What is a FAST channel and how does its CPM compare?
FAST (Free Ad-Supported Streaming TV) channels like Tubi, Pluto TV, and Freevee offer free content supported entirely by ads. FAST CPMs run $15–$25 — lower than premium SVOD tiers (Hulu, Peacock) because audiences skew slightly less affluent and ad loads are heavier, but they offer strong reach at a lower entry cost.

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