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Online video CPMs can’t hold up April 26, 2009

Posted by jeremyliew in advertising, video.
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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.

Comments»

1. joe g - April 27, 2009

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

2. Wagner James Au - April 27, 2009

Very interesting, but I’m a bit confused, shouldn’t this post be titled “OFFLINE video CPMs can’t hold up”?

jeremyliew - April 27, 2009

It looks like online video cpms are much higher than tv cpms, so i anticipate that online video cpms will come down

3. Matt T Richards - April 27, 2009

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.

4. world cities - June 1, 2009

Very interesting, but I’m a bit confused, shouldn’t this post be titled “OFFLINE video CPMs can’t hold up”?

5. What’s Your CPM Per Minute for Visitors? | YieldBuild Blog - August 10, 2009

[…] long.   That means one person sees about 32 commercials per hour.  I used an estimated CPM of $10.25 for TV.  If a person watches sixty minutes of TV, that’s an effective CPM of $328 per viewer.  If […]

6. SilverDock Blog - Product Video Merchandising, Video SEO, and Video SEM for Online Retail and E-Commerce Marketing - » Online video ad CPMs can’t hold up - September 8, 2009

[…] Liew shared some data this spring that indicates that online video ad CPMs will probably have to come down.  Right now, online video ads sell for almost four times the CPM of television ads!  (Online […]

7. Anna Melamud - February 10, 2010

We’re all forgetting ONE very important factor. People that are watching your commercial on television are not sitting there with a pen and paper ready to write down your # as if they were searching for your services, they might be watching your commercial but by the time they locate a piece of paper or napkin to write on and find a pen, your commercial is most likely over. As far as Online Video Commercials go, the people themselves have turned on their computer, went online, typed in a few keywords pertaining to what they are searching for, at that very moment, and if those keywords contain the services you offer or products you sell then your Online Video Commercial comes up. My point is that wouldn’t you rather spend money knowing that your commercial will get booted up only when people are searching for you rather than placing your commercial on televesion and hoping that somebody will be watching at that very moment.


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