3 Common Pitfalls in Streaming TV Advertising

Avoiding Common Pitfalls: Blended CPMs, Lack of Education, and Recycled Inventory

Streaming TV is a powerful tool for auto dealers, but it's also a new and complex frontier. Unscrupulous or simply uneducated providers can easily waste your budget on ineffective strategies and opaque reporting. To protect your investment, you must learn to spot the critical red flags. Here are three of the most common pitfalls to avoid.

Red Flag #1: The "Blended CPM"

If a provider gives you a single, averaged-out "cost per thousand impressions" (CPM) for your entire digital campaign, your alarm bells should be ringing. This is called a blended CPM, and it’s often used to hide where your money is really going. It allows a provider to lump premium streaming TV ads together with huge volumes of cheap, low-quality placements (like video ads on "Dog TV") and present you with a reasonable-looking average. As James Klaus warns, "If you just see one CPM... huge red flag. People are hiding something there." Always demand transparent, itemized reporting with a separate CPM for each media channel.

Red Flag #2: Recycled or Remnant Inventory

Not all agencies have the same access to quality ad placements. The best partners have direct "seats" on major ad-buying platforms (DSPs), giving them first access to premium inventory. Many others simply buy leftover, "remnant" inventory from larger agencies and resell it to you at a markup. You’re essentially paying more for second-hand goods that are less targeted and less effective. Ask your provider directly: "Do you have direct access to the demand-side platform, or are you reselling inventory?" Their answer is incredibly revealing.

Red Flag #3: A Lack of Education

Your marketing provider should be a partner who empowers you, not a vendor who confuses you. If they use excessive jargon, can't explain their strategy in simple terms, or make you feel uninformed for asking questions, it’s a major problem. A great partner is an educator. They welcome your questions and make it their job to ensure you understand exactly how your money is working for you. If you consistently leave meetings feeling more confused than when you started, it’s time to find a new partner who values transparency.

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