Commentary

You Paid WHAT for That Video Ad?

Conference goers received a rare glimpse into what marketers are paying for standard online video ad formats at the OMMA Video show in New York on Monday. Philip Braden from the video ad network ScanScout, one of the many companies that helped popularize the overlay, said his company charges a minimum $10 CPM. Eric Hadley, CMO of Heavy.com, which serves a targeted audience of 18-34 males, charges a $25-30 CPM. And Rebecca Paoletti, Yahoo's director of video strategy, said that low-priced CPMs for standard untargeted ads start at $25 per thousand views on Yahoo.

For Chris Allen, the lone media buyer on the panel (from Starcom USA), ScanScout was the only seller to offer the right price. Allen, a former television buyer, pointed out that video CPMs present a significant premium over television, although he was quick to add that studies show that ad recall is very high in online video, so advertisers should be willing to pay more. That said, he only offered “teens” as a fair CPM, adding that there are “always going to be some rules to be broken.”

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