Are You Wasting Your CTV Budget Without Even Realizing It?
In Part 1, we covered how to fix an inefficient CTV campaign, but today, we’re diving into the “why”—why so many advertisers end up spreading their budgets too thin and failing to reach their audience effectively.
Spoiler: It’s not entirely your fault. The way the industry is structured plays a major role in how your budget gets allocated—and not always in a way that benefits you.
Let’s break it down.
More People Are Streaming, So Why Isn’t Your Budget Reflecting That?
Streaming isn’t the future—it’s the present.
✔️ According to LG’s own device data, less than 15% of TVs consume only linear broadcast and cable.
✔️ Independent measurement consistently shows that CTV reaches 35-40% more households than linear TV across most major DMAs.
And yet, we constantly see brands allocating a fraction of their linear TV budgets to CTV.
Why? Because of who’s controlling the narrative—and their financial incentives.
The Hidden Influence of Linear Broadcast and Cable
Before cord-cutting really took off, broadcast and cable companies saw what was coming. They made strategic moves to partner with or invest in streaming ad companies early on. Smart, right?
Yes, but there’s a catch.
These same companies still rely on linear TV ad sales to stay profitable. And when local stations resell or outsource their CTV inventory to their corporate parent companies or third-party providers, they make far less money from streaming placements.
What does that mean for you?
🔹 Local stations have a built-in incentive to push advertisers toward traditional TV spots instead of recommending a proper budget allocation based on audience reach.
🔹 Since they’re outsourcing CTV placements, there are more middlemen, which leads to higher CPMs—meaning you get fewer impressions for your budget.
This is where your budget starts working against you.
How Much Are You Overpaying for CTV?
If you’ve ever felt like your CTV costs seem inflated, you’re not imagining it.
📌 We’ve seen advertisers paying 3-4x more than a fair market rate—often without realizing it.
📌 Many CTV providers don’t adjust targeting to make your budget more efficient. Instead, they just serve impressions to a broad audience, making it easy for them to take your ad dollars without optimizing your campaign.
That means your already-too-small budget is getting you even fewer impressions than it should.
How to Fix It: Take Control of Your Budget
Now that you know why this happens, here’s how to avoid the trap:
✅ Don’t assume linear broadcast and cable broadcasters have your best interest in mind. Their bottom line depends on keeping linear ad revenue high.
✅ Be wary of high CPMs. If your provider isn’t placing your ads directly, you’re likely paying more than you need to.
✅ Ask for campaign transparency. If your audience targeting is too broad for your budget, demand optimizations—or switch providers.
Is Your CTV Budget Being Spent Efficiently?
If you’re unsure whether you’re getting the most out of your CTV advertising, don’t leave it to chance.
🔍 Get a free campaign audit from our team at adduro.io and see how your budget stacks up.
Stop letting middlemen eat up your ROI—start streaming with clarity.
