What Does Lower CPMs for Video Ads Mean to YOU?

eMarketer (via Wired) produces sober estimates about the sustainability of the current online-video “CPM.” (that’s the way online-video ads are priced… cost per thousand).

What does it mean to you?

1. Viewer: Not much. Just keep watching. Especially my crap.
2. Amateur Creator: It may seem initially upsetting, but of course supply/demand will take care of things. If you attract audiences that marketers want to reach, then you’ll command a decent CPM. If not, then you’ll either have lower CPMs or no ads at all (or worst yet, Google Adwords). And for the love of video, go for non CPM revenue models like sponsorships or custom promotions (see important post about these). There’s a fertile market for advertisers looking to engage without paying hundreds of thousands in ad buys. Again- this has been far more profitable than checks from a YouTube partner program (which are really welcome but I could work at Taco Bell for a better hourly wage).
3. Advertiser: It’s a buyer’s market, dummy. Negotiate a big deal, and drive for low CPMs and other “added value.” But you’ll have to be willing to be a little brave on what inventory you seek… maybe even have to advertise on — gasp — non-professional content. Don’t worry, ad buyers. You’ll soon enough have data that will be your “binky” and sooth you and your clients about advertising recall/awareness surrounding amateur content. If you’ve read this far and you’re a media buyer than you’re the first one I’ve met who can read.
4. Online Studios: Go even more niche. Find audiences that TV can’t, and serve them. Trust that advertisers will pay to reach them, or secure non CPM ad sponsorships in advance. And hedge by going for volume at low cost, not expensive individual pilots.
5. People That Still Like the Safety of TV and Print: Palin called. She needs her brain back.

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