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Costs and pricing

Part of What connected TV advertising costs and pricing means for English buyers

Which connected TV advertising pricing models suit a fixed budget?

Compare connected TV advertising pricing models: CPM, fixed fee, sponsorship and performance deals, with pound figures, auction rules and the questions to ask.

What to take away

  • IAB UK's adspend data put UK digital ad spend above £10bn in its full-year release for 2024, published in February 2025, with video and CTV inside that total.
  • CPM is the default model: you pay per thousand impressions, and competition in the auction sets the clearing price.
  • Fixed fee, sponsorship and performance deals exist because buyers want certainty or accountability, not because the inventory is cheaper that way.
  • The model you choose determines which costs you controlmedia, data, production and measurement.
  • Get the rate card, floor price and cancellation terms in writing before you sign.

How CPM buying sets the price

Most connected TV in England is bought on a cost per thousand impressions basis. You agree a rate, the platform delivers against your targeting, and you pay for what runs.

CPM buying routes compared

Open auction

Rate
Moves with demand
Access
Anyone can bid
Minimum spend
None
Peak season
Unpredictable
Quiet periods
Looks cheaper

Private marketplace

Rate
Fixed in advance
Access
Invited buyers
Minimum spend
Usually required
Peak season
Protected
Quiet periods
Fixed

Programmatic guaranteed

Rate
Fixed rate
Access
Priority access
Minimum spend
Usually required
Peak season
Protected
Quiet periods
Fixed

In an open auction, price moves with demand for the same audience and daypart. A private marketplace deal fixes the rate in advance and usually asks for a minimum spend.

Programmatic guaranteed buys promise a fixed rate and priority access. Open auction buys look cheaper in quiet periods and unpredictable during peak season.

Floor prices matter more than the headline rate. A seller sets a minimum, and bids below it never run. A low floor on paper can still clear well above it in a competitive week. Ask what the floor price was last quarter and how often it was hit.

Rates track audience concentration. Barb's weekly top 50 shows records how much UK viewing sits with a small number of titles, and inventory around those titles is priced accordingly.

Data, verification and measurement fees sit on top of the media rate. Each is negotiable, and none is free. Our costs and budget guide for England lists the lines that belong in a plan before you talk to a seller.

Fixed fees and sponsorship deals

A fixed fee buys a defined package: impressions, flight length and named placements for one price. Revenue becomes predictable for the seller, and the cost is capped regardless of how the auction behaves.

Fixed fee vs sponsorship

Fixed fee

Priced on
Impressions and flight
Cost certainty
Capped
Main draw
Protects from rate rises
Main risk
Overpaying in soft demand
Must ask for
Delivery guarantee and make-good

Sponsorship

Priced on
Package, not impressions
Cost certainty
Package rate
Main draw
Association premium
Main risk
Full-run commitment
Must ask for
Credits and on-demand placements

A fixed fee protects you against mid-flight rate rises, which is its main draw. The trade-off is overpaying when demand softens and the auction clears below your agreed rate. Ask for a delivery guarantee and a make-good clause so the package still lands if viewing shifts.

Production sits outside the media fee and catches first-time buyers out. Thinkbox's advice on making an affordable TV ad is a practical starting point when the creative budget is small.

Sponsorship and takeovers are priced as packages rather than impressions. A series sponsorship carries credits around each episode plus on-demand placements, and the seller builds an association premium into the rate. Expect a commitment for the full run rather than a fortnight.

Performance and hybrid deals

Performance pricing shifts risk to the seller. You might agree a cost per acquisition, a cost per completed view or a guaranteed completion rate, with a minimum spend attached. Hybrid deals pair a base rate with a bonus if an agreed outcome lands.

Performance terms need a clean measurement path before you sign. Agree the attribution window and who counts the conversion, because 30-day and 7-day windows produce very different claim rates.

The seller prices that risk into the base rate, so a pure performance deal is rarely the cheapest option per impression. Judge the total campaign cost instead of the headline metric. Our guide to connected TV advertising return on investment sets out which outcomes you can measure credibly.

Which model fits which situation

Choose

First test with a modest budget
Fixed fee flight or short private marketplace deal
Predictable cost per acquisition
Performance or hybrid deal with a CAP
Presence around a specific programme
Sponsorship tied to one series
Using first-party data
Private marketplace with a data fee agreed up front
Peak-season dates such as Christmas
Book early at a fixed rate

Avoid

First test with a modest budget
Twelve-month sponsorships
Predictable cost per acquisition
Open auction with no floor price
Presence around a specific programme
Blind exchange buys with no adjacency control
Using first-party data
Broad fixed packages with no targeting
Peak-season dates such as Christmas
Leaving everything to the auction

Common questions

Which pricing model is cheapest for a first campaign?

Whichever caps your total spend. For example, a team paying £4,000 for a two-week fixed fee test knows its ceiling, while an auction buy at a £12 CPM can overspend if demand rises.

Do I need a rate card from each supplier?

Yes. A rate card separates media from data, measurement and platform fees, which makes two quotes comparable. Without one, suppliers can look identical on the headline rate and differ by thousands once extras appear.

What costs sit outside the media price?

Production, data onboarding, verification, ad serving and measurement. Each is normally invoiced separately, and on small campaigns the extras can rival the media fee itself.

How do I compare quotes that use different models?

Convert each quote to a cost per thousand impressions and a total campaign cost. Then check what is guaranteed, what is capped and what happens if delivery falls short.

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