Thursday, December 06, 2007

CPM Killed The UK Video Ad Star

Video will be the big online story next year in the UK and Europe. During April 2007 80 per cent of UK internet users over the age of 15 watched a video online and online video usage is outpacing the US. (Comscore)

Bigger pipes, cheaper production, a change in the way people use the internet and the fact clients still get to go on shoots but without the huge media expense, mean there is an appetite for online video ads. Oh, not to mention the fact they just plain old more effective that non video online ads or even video ads played on TV.

The one thing standing in the way? UK media owners. The average video CPM in the US is bugger all but in the UK and europe there seems to be a huge media premium.

According to Michael Shehan in The Buyer's Guide to video ads a US range is starting to emerge

Professional content on tier one sites (e.g., NBC): $20 to $75 CPM
Original content, smaller niche sites (e.g., LiveVideo's LiveBands): $10 to $50 CPM
Local video inventory (state or city): $10 to $40 CPM
Professional content distributed on syndication networks (e.g., Voxant's Newsroom): $10 to $25 CPM
User-generated content (e.g., MySpace): $1 to $20 CPM

This is expected to change in the coming year as demand from the big media houses forces it down. Any friendly media bods out there fancy quantifying the european market for me....

An aside; allegedly at a recent client meeting the budget was halved - TV got cut, online did not - and to add insult to injury the online guys took the film director who was lined up for the TV to shoot the site.

Disclaimer: I work at Ogilvy and on Kodak but sadly had no involvement with this project.


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