By Lewis Rothkopf
October 26, 2o09
In recent months, the video ad market has generally been rewarding those publishers who 1) have high-quality, branded content; 2) have a significant amount of inventory; and 3) are willing to be reasonably aggressive with their CPM rates in exchange for larger budgets.
I am often approached by publishers who want to grow video ad revenue and are willing to be flexible on pricing in order to get there. The challenge they sometimes face is that their amount of available inventory doesn’t justify the CPMs at which they need to sell in order to remain competitive.
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By Tod Sacerdoti
October 19, 2009
Given the power and success of Google’s CPC search business model, it’s not surprising that the products du jour in online video advertising are performance pricing, CPE, CPV, and CPC. At the same time, advertisers are feeling the effects of the economy and are showing a greater interest in measurable ad spends. However, like all online media tools, the devil is in the details (or in this case, the acronyms).
Let’s take a closer look at the benefits and downfalls of each of these online video advertising pricing units.
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By Tod Sacerdoti
October 5, 2009
I was recently on a panel discussing online video advertising, and a fellow panelist proclaimed “reach is not a problem for us, as we reach 115 million people according to comScore.” This statement is factually incorrect.
To accurately reflect his company’s reach, the panelist should have said, “We can potentially reach 115 million people.” According to comScore’s methodology, in order reach those 115 million people, the network would have to buy every ad impression on every publisher they work with. Furthermore, only those publishers with more than 2% reach are verified to have an actual business relationship with the network.
(full disclosure — comScore began measuring my company on both actual reach and potential in April, 2009)
As with most misleading metrics, potential reach was likely created to help sell something. ComScore wanted to sell large annual subscriptions to video ad networks and video ad networks wanted a big reach number to sell advertising and compete effectively against the large display ad networks. The metric has fundamentally served its purpose – all video networks are paying customers and many video networks’ actual reach is large enough to compete with the large display networks — and as such, it is time to put this metric to rest.
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