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What Does Lower CPMs for Video Ads Mean to YOU? October 3, 2008

Posted by Nalts in : Online Video , trackback

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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Comments»

1. sukatra - October 3, 2008

What does lower CPMs for video ads mean to ME? Another boring blog post.

2. brindle16 - October 3, 2008

dude, really, stop trying to insult Sarah Palin. It’s getting really annoying.

3. somecallmejim - October 3, 2008

@2

It’s all in good fun, you know. (I think he’s f’ing Sarah Palin)

What does a lower CPM mean? It means hurry up everyone, go watch some of my revenue-sharing videos before it’s too late!

4. Peter Coffin - October 3, 2008

Lower CPM = meh, whatever. It will get better.

5. Reason #823 You Should Be Producing Video Content - Mashable - October 3, 2008

[...] videographer Nalts weighed in with a few pieces of advice for the people in the various parts of the online video equation (viewers, amateur creators, [...]

6. DahliaK - October 3, 2008

I love it when Nalts is called a videographer.

Hey, has anyone heard how Marquisdejolie is doing?

7. brindle16 - October 3, 2008

@6

especially a master videographer. he’s not a master of anything, except whoring himself out. and misspelling words.

8. Viral Video Wannabe - October 3, 2008

I can haz sponsorship?

9. Reason #823 You Should Be Producing Video Content  »TechAddress - October 3, 2008

[...] videographer Nalts weighed in with a few pieces of advice for the people in the various parts of the online video equation (viewers, amateur creators, [...]

10. 9 Audio Ad Networks for Websites, Blogs, and Beyond  »TechAddress - October 3, 2008

[...] videographer Nalts weighed in with a few pieces of advice for the people in the various parts of the online video equation (viewers, amateur creators, [...]

11. marquisdejolie - October 3, 2008

What does lower CPMs for video ads mean to ME?

Less than it did 6 months ago.

12. jischinger - October 4, 2008

icupcpms

13. sukatra - October 4, 2008

Marquis is still alive? Damn! I need to get my money back from those corrupt surgeons.

14. Nalts - October 4, 2008

Marquis is still alive! Yey. We’re not ready to mourn him or start appreciating his art yet.

15. Will Video for Food » Viral Video Case Studies… and cute dog costumes - October 4, 2008

[...] I said in yesterday’s post about CPM, the future profit model for online-video creators has sponsored content at its heart. Nothing [...]

16. Peter Coffin - October 4, 2008

@14- Who says we can’t mourn him? He might appreciate it.

17. somecallmejim - October 4, 2008

Or combine the two, and mourn over his art.

18. Peter Coffin - October 4, 2008

Ba dum chshhhhh!

19. jischinger - October 4, 2008

Do you really think laying on an operating table connected to a bunch of tubes wires and under an anesthetic would stop mdj from uploading videos to You Tube?

and here I thought you guys knew him.

20. marquisdejolie - October 4, 2008

@16
The estate of marquisdejolie appreciates your kind thoughts and asks that mourners send charitable contributions to the Help Me Keep My Mean Drunk Sister Fat fund (click) in lieu of flowers.
@17
I mourn over my art enough for all of us, but thanks.
@19
I keep 22 (now 21) ‘In Reserve’ videos for times like this. Theoretically, I could upload about a month’s worth of videos 4 weeks after my death. Wouldn’t keep up with my comments, though.

But I’m back from Arkansas now.

21. NutCheese - October 5, 2008

So many words… so little meaning to me.

22. Nutsack - October 5, 2008

Nutcheese needs more pictures, less words.

23. NutCheese - October 5, 2008

I’m not picky… I’m okay with pictures or video.

24. Reason #823 You Should Be Producing Video Content | kNow Media - October 6, 2008

[...] videographer Nalts weighed in with a few pieces of advice for the people in the various parts of the online video equation (viewers, amateur creators, [...]

25. Viral Video Case Studies… and cute dog costumes « Politics & YouTube In Review - October 6, 2008

[...] I said in yesterday’s post about CPM, the future profit model for online-video creators has sponsored content at its heart. Nothing [...]