What Does Lower CPMs for Video Ads Mean to YOU?

October 3, 2008

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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{ 6 trackbacks }

Reason #823 You Should Be Producing Video Content - Mashable
October 3, 2008 at 5:44 pm
Reason #823 You Should Be Producing Video Content  »TechAddress
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9 Audio Ad Networks for Websites, Blogs, and Beyond  »TechAddress
October 3, 2008 at 6:39 pm
Will Video for Food » Viral Video Case Studies… and cute dog costumes
October 4, 2008 at 5:29 am
Reason #823 You Should Be Producing Video Content | kNow Media
October 6, 2008 at 8:28 am
Viral Video Case Studies… and cute dog costumes « Politics & YouTube In Review
October 6, 2008 at 10:18 am

{ 19 comments… read them below or add one }

1 sukatra October 3, 2008 at 3:21 pm

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

2 brindle16 October 3, 2008 at 3:38 pm

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

3 somecallmejim October 3, 2008 at 4:13 pm

@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 at 5:04 pm

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

5 DahliaK October 3, 2008 at 5:45 pm

I love it when Nalts is called a videographer.

Hey, has anyone heard how Marquisdejolie is doing?

6 brindle16 October 3, 2008 at 6:10 pm

@6

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

7 Viral Video Wannabe October 3, 2008 at 6:31 pm

I can haz sponsorship?

8 marquisdejolie October 3, 2008 at 10:35 pm

What does lower CPMs for video ads mean to ME?

Less than it did 6 months ago.

9 jischinger October 4, 2008 at 12:17 am

icupcpms

10 sukatra October 4, 2008 at 12:39 am

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

11 Nalts October 4, 2008 at 5:23 am

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

12 Peter Coffin October 4, 2008 at 5:45 am

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

13 somecallmejim October 4, 2008 at 9:07 am

Or combine the two, and mourn over his art.

14 Peter Coffin October 4, 2008 at 9:32 am

Ba dum chshhhhh!

15 jischinger October 4, 2008 at 10:43 am

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.

16 marquisdejolie October 4, 2008 at 1:14 pm

@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.

17 NutCheese October 5, 2008 at 3:50 pm

So many words… so little meaning to me.

18 Nutsack October 5, 2008 at 4:16 pm

Nutcheese needs more pictures, less words.

19 NutCheese October 5, 2008 at 4:17 pm

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

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