Online Video CPM Price Nearly Twice The Price Of National Broadcast TV Commercial

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Media Dynamics, a consulting/publishing company specializing in marketing analyses and forecasts for media, marketing and advertising industry, estimates that in 2013 the average CPM price for an online video ad was about double the price of a national broadcast TV commercial and in some cases even more than that for targeted online video.

Online Video

Media Dynamics reports that in 2013 the average online video ad – which can be of varying lengths, but averages close to 15 seconds – was priced at around $20 to $23 per thousand views/impressions (CPM). Media Dynamics differentiates between “untargeted” mass online video ad buys and “targeted” buys. “Untargeted” mass video buys are generating much lower CPMs than their “targeted” counterparts at $9.25 CPM, which makes it roughly comparable to TV’s all-daypart/all-platform buys. The top price for “targeted” video advertising, according to Media Dynamics, is average $32.75 CPM, primarily because it outperforms its “non-targeted” counterpart in ad recall and impact metrics.

TV Commercials

According to Media Dynamics, a traditional 30-second TV commercial captures viewers for CPMs as low as $3.30 on cable’s daytime program rate, to as high as $19 for broadcast network primetime buys.

Media Dynamics calculated that an average CPM for 30-second units across all TV dayparts and platforms comes out to roughly at $9-$10 CPM. Late-night broadcast TV programming is at $17.50; syndicated prime-access programming is at $17; and cable prime-time programming at $9.85. Early-fringe syndicated programming averages $9.25; broadcast TV early evening news is at $9; and cable programming early fringe comes in at $7.55. Network daytime is at $6.50; with syndicated daytime programming at $5.50 CPM.

CPM prices for internet video and tv commercials

Online Video Ad Spending

Estimates from eMarketer indicate that US online video ad spending will nearly double in only four years, climbing from $4.14 billion in 2014 to $8.04 billion in 2016. Based on a somewhat rough estimate from Credit Suisse, eMarketer cited that CPM’s for mid-tier sites and placements, in 2013, came out to be approximately $25 CPM and reached nearly $33 CPM for premium video ads. eMarketer estimates that the number of US digital video viewers will rise by more than 22 million between 2013 and 2017.