Streaming Super Bowl Ad CPM Higher Than TV Ads

Streaming Super Bowl Ad CPM Higher Than TV Ads

According to Mediapost, streaming video ads for the Super Bowl XLVI videocast will be more than the average TV-based Super Bowl ad, around 1.5 times as much. What does that say about the importance and maturity of online video advertising? I think it might be saying "we have arrived." Then again it could be saying, "The NFL is uber-greedy!"

Streaming Video Ads For Super Bowl XLVI Set At $55 CPM

Who would pay a rate so high that it is estimated to be around $20 higher CPM than the TV ads? GM apparently has gone for the win and taken the exclusive online auto ad bait. That's some hefty ad spend for the NFL championship game that will be streamed via NFL and NBC websites and on Verizon mobiles.

Verizon says they have 71 million or so on their network so a modest 1% of them would be about 710,000 or $39,000 for a single 30-second commercial. Now we have to add in those who might watch it online which might be another million or two. If it hits 2 million viewers, it's $110,000 per ad, at three million it's $165,000 for a single half-minute streaming ad.

Those are going to be some of the highest priced online video advertising spots ever.

The XLVI streaming ad package is set to include streaming video ads as well as a companion ad (probably 300x250). Other options include separately placed 300x250 ads for $14/CPM and 728x90 leaderboards at $12 CPM, both of which are banners and not video.

Does this now set a new standard on streaming video ad prices? Probably not. Some people have stated that $55 is way too high, even for the Super Bowl. Any advertising that doesn't get sold to sponsorship partners will be offered to other TV advertisers. If, after both groups pass, there is inventory left it will be opened to the general advertising public.

Basically, I think that the video streaming ads that are left unfilled would determine whether or not the NFL has tried to reach too deeply into advertiser pockets. $55 CPM is insane, especially when industry average is cited to be around the $10-15 CPM mark. That's then 4-5x standard streaming video advertising rates. Considering that they are pricing their 300x250 at about the standard rate for streaming video ads me thinks they just want to fill the coffers. After all, it takes big piles of cash to pay all those players and I can't even imagine how much the Super Bowl halftime show will cost. As for me? I won't be watching because I don't care. If the Packers aren't there, I have no interest, though maybe I should just to see the advertisers online.


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About the Author -
Christophor Rick is a freelance writer specializing in technology, new media, video games, IPTV, online video advertising and consumer electronics. His past work has included press releases, copy-writing, travel writing and journalism. He also writes novel-length and short fiction as part of Three-Faced Media . View All Posts By -

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  • http://www.facebook.com/profile.php?id=1224369203 Amanda Banks

    Same for Hulu. Ads on Hulu were more than costs for over the air.