Online video CPMs can’t hold up April 26, 2009
Posted by jeremyliew in advertising, video.trackback
eMarketer has a couple of interesting charts on CPMs by media types.
First offline media:
Next online video:
Online video preroll CPMs are at $25-35.
TV CPMs are at $6-10.
Even granting some premium for preroll that has to be watched (vs TV which can get skipped), these CPMs can’t hold up.
Jeremy -
Nice post. Have you seen any stats that dig deeper into this question? From what i have heard, PRIMETIME TV CPMS average $25. (http://www.marketingwithmeaning.com/tag/cpm). But daytime TV can average as little as $5 CPM.
Why is daytime TV so much cheaper than primetime? Is online video more like the former or the latter?
On a per unit basis, does an online video ad generate more or less consumer awareness than a 30-second tv spot?
I have heard that CPMs for shows on HULU – one of the first examples of premium content with meaningful reach on the internet – command prices over $60 CPM. That would suggest that there is meaningful potential upside coming into online video as well.
~j
Very interesting, but I’m a bit confused, shouldn’t this post be titled “OFFLINE video CPMs can’t hold up”?
It looks like online video cpms are much higher than tv cpms, so i anticipate that online video cpms will come down
Another factor to consider here is the difference in targeting between mediums. Traditional agencies have been spending more to get at more eyeballs (prime time cpm’s vs remnant inventory cpm’s). Interactive agencies spend more to get better targeting for their brands. As a result, I’m not sure that cpm’s will fall as the only things these mediums share is the way the message is presented, not so much the way they are valued by the agencies that buy the medium nor the inherent effectiveness therein.
Very interesting, but I’m a bit confused, shouldn’t this post be titled “OFFLINE video CPMs can’t hold up”?
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