Video Advertising CPMs - eMarketer

Newsletters Sign-Up

Plans & Pricing

Does My Company Subscribe?

Video Advertising CPMs

Bottom line: Video ads generate more revenues.

September 19, 2008

While the CPM pricing model is the method marketers use the most to buy video advertising, it is necessary to discuss it with a few caveats:

  • Advertisers rarely reveal exactly what they pay for ads, and publishers hardly ever let on exactly what they charge.
  • The cost of ads is based on at least two factors: the rate card cost and the discounted cost, which changes based on inventory, timing and customer. Typically, the data here does not indicate which cost—rate card or discounted—is being counted.
  • Even when the ad prices are essentially accurate, they are averages.

That said, available data reveal trends and tendencies.

Bain and Company recently polled seven Web publishers for the Interactive Advertising Bureau (IAB) and found that all of them listed higher prices for online video advertising than for display (banner) ads. On average, the video CPM was approximately $43, or about three times higher than the $15 average CPM for display ads.

That basic pricing dynamic is a prime mover for publishers to offer more video content that can support more video ad inventory.

Average Direct Sales CPMs for Online Advertising Sold by Select US Web Publishers, by Type, 2007

The higher CPMs commanded by online video ads are not uniform.

The recent "Online TV and the Future of Digital Video Advertising" study from The Diffusion Group estimates current CPMs for user-generated video at $15, with CPMs twice that for short-clip video and $40 CPMs for long-form video. All three CPMs will rise gradually through 2013, according to projections from the research firm.

Agencies and brands from all verticals rely on eMarketer Total Access for analysis and data. Daily articles are just the tip of the iceberg. Find out what you are missing. Learn more about Total Access today.

TRENDING REPORTS

  • Go beyond the articles:

    coverage
    eMarketer Products

    You've never experienced research like this.

    SEE FEATURES »
  • Hear from our clients:

    coverage
    Customer Stories

    Nearly all Fortune 500 companies rely on us.

    READ MORE »
  • Want to learn more?

    coverage
    Contact Us

    Inquire about corporate subscriptions today.

    CONTACT SALES »