A week of thinking out loud … #2 Video CPMs


Video is the Collingwood Football Club of the digital world. It has potential, sure, but right now is a complete pain in the arse and under performing for all involved.

We are told people are watching video online and it’s a true statement, they are … to an extent. It’s not really massive but it’s there and growing.

Some think video will save online – as it offers the hope of large CPMs and a product that can be flogged to TV buyers.

This isn’t much more than a myth combined with wishful thinking.

Stacked next to TV (FTA and Sub) video CPMs online are exponentially more expensive.

Add to this very minimal data around consumption. Ask who is watching these videos and you’ll generally get some very flimsy data around demographics usually taken from the topline site numbers.

Ask what content appeals to what audiences and the info is even less detailed.

The way I look at it, Pay TV is online videos biggest competitor and it’s knocking it the f*ck out.

It offers similar benefits, namely
– niche content
– less ads
– quality content
– the ability to reach those who don’t watch much FTA
– significant audience growth

It’s also about 5 times cheaper.

If we want video to start to get real takeup we need to price it more in line with Pay TV. The two aren’t that different if you take off your digital blinkers.

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4 responses to “A week of thinking out loud … #2 Video CPMs

  1. Hey Ben

    In the UK atm we’re seeing more and more cross media teams being being formed within media agencies (mainly digital being brought in from the cold), so potentially online video inventory could soon be at easy reach of a TV planner/buyer.

    Do you have any further thoughts around the selling of on online video to TV buyers? If the price was more inline/competitive do you think they’d see this as another distribution channel to their audience? Or do you think most sites with a quailty audience and video offering still dont offer enough reach and simplicity in buying to make it viable?

  2. Thanks for opening the door to this Ben, you make some very valid points indeed. I am pleased to announce on July 2, we will be launching an online video solution that addresses your points across a network of premium publishers. Stay tuned…

  3. iamcontrarian

    Nonsense.

    More expensive????????? How can anybody assert it is more expensive when rates vary in the hundreds of percent?

    Show me the rate and I will believe you.

    Also there are not many ads at all in online video, much less than pay tv or FTA so the impact is much better.

    Ben I love you dearly but I reckon you are beating up the wrong guy here. Select a price that recognises a captive audience and pay for it.

    x

  4. talkingdigital

    walsh happy to take you through all this when i see you next

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