We already know that online video advertising vs. traditional banner display advertising is 4-7 times more effective for advertisers. So it stands to reason that publishers should be able to generate more revenue, and they do. But advertisers can look at this as a bargain because video advertising only costs 2-3 times more on average, for now.
There was a nice article from eMarkerter that highlights recent research comparing online video advertising rates across 7 select US web publishers for video ads vs traditional video banner ads. According to the IAB/Bain “Digital Pricing Research” report, CPMs for online video ads were approximately $43CPM on average, almost 3 times more than display ads which generate $15 CPMs on average.
You can see from the figure on the right however, that this varies from publisher to publisher. company A is charging almost 5 times the amount, while company G is charging less than a 50% premium. So for those advertisers that know where to advertise, the bargain can be even greater.
Additional research from The Diffusion Group demonstrates that professional video content and long-form video content currently get the highest CPM, with short-form and then user-generated video content to follow.
- User Generated Video Advertising – $15CPM
- Short-clip / Short-form Video Advertising – $30CPM
- Long-form Video Advertising – $40CPM
The same report states that CPMs for all three will rise gradually through 2013, to account for revenues predicted to reach almost $10 Billion in 2013. Get em while they’re cheap!
As eMarkerter points out, there are a few caveats that are important to mention:
- Although the research shows average CPMS, most of these rates are derived from publisher’s rate cards, and we know that not all advertisers pay full rate.
- Even though the ad prices may be accurate, these are still averages.
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About the Author -
Mark R Robertson Mark Robertson is the Founder and Creator of ReelSEO.com and has had extensive experience in online marketing, particularly in Search Engine Marketing (SEM) and Search Engine Optimization (SEO). Mark was previously the Director of Search for Freedom Communications and has worked with many newspaper and broadcast stations for optimization online content.
