OTT (Over-The-Top) is bought on CPM only, averaging $28.00. Meta Ads averages $1.10 CPC and $7.80 CPM. Analysis for E-commerce in 2026.
Connected TV and streaming platforms (Hulu, Roku, etc.)
Facebook and Instagram advertising - highly targetable social ads
The auction, the creative, the budget floor — the three things you actually need to know before picking a platform.
OTT (Hulu, Peacock, Roku, Samsung TV+, etc.) is bought exclusively on CPM with 15- and 30-second video creative. Rates run $25–40 CPM — the highest of any digital channel — because inventory is finite premium video and the ROAS story is measured against linear TV, not against Facebook.
15s or 30s video, 1920×1080 (16:9), broadcast-quality mastering. No skippable formats. Most platforms require closed captions and mezzanine-file delivery through demand-side platforms.
OTT has a real budget floor: most DSPs require $5K–10K/month minimum, and to reach reliable frequency in a metro DMA you need $15K+/month per platform.
Meta (Facebook + Instagram) runs an auction across Feed, Stories, Reels, Marketplace, and Audience Network. You optimize for a conversion event; Meta's algorithm decides bid and placement. Effective CPM is $6–12, effective CPC $0.80–1.50 depending on optimization goal and vertical.
Feed: 1:1 (1080×1080), 4:5 portrait (1080×1350). Reels/Stories: 9:16 (1080×1920). Video 15–60s. Carousel supports 10 cards. Copy ~125 chars before the truncate. Creative fatigue is the #1 cost driver — refresh every 2–3 weeks.
The algorithm needs ~50 conversion events per week per ad set to exit learning phase. For a $30 CPA that's ~$1,500/week or $6K/month per campaign. Below that, performance is a lottery.