BrightRoll: Video Ad Rates Dropped 12 Percent In First Quarter, And The Pre-Roll Is Still King
Posted: April 28, 2009
By: techcrunch.com
The ad rates for online video keep coming down, and that is a good thing. Video ad network BrightRoll is about to release some data from the first quarter of 2009 which shows ad rates as measured in cost-per-thousand impressions (CPMs) dropping 12 percent annually. The rate of decline is slowing from the 25 percent drop that video ad CPMs experienced during the fourth quarter of 2008. But if they fall farther that could be a good thing.
In a survey of 150 advertising executives in the U.S., more than half (53 percent) expect video CPM rates to be “marginally lower” a year from now, while another 20 percent think CPMS will drop in half. Video CPMs range broadly depending on whether the ads are being sold directly by sites with large video inventories or by ad networks, but a $20 CPM is a broad industry average. These still need to come down to between $7 and $9 to roughly match what advertisers are paying for commercials on TV on average (more like $15 for primetime, and as high as $50 for niche, targeted cable channels). These declining CPMs probably have something to do with the downward revision in ad video revenue estimates that we are starting to see……….[read entire article]
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