CPM watch: major video site getting $20-25
Posted by Daniel Granof on February 26, 2010
The other day I met with the head of a well-known site that publishes lots of videos (viral and series). He said they are getting $20-25 CPMs for some of their pre-rolls. For reference: at that rate a single video getting 100,000 views makes $2,000. So if you can sell an advertiser on long-tail viewing of a bunch of your videos and provide significant reach, you’re not doing too badly.
By the way, when I brought up rumors of Hulu getting $40, he suggested that the figure covers all of a sponsor’s ads within an episode, not just a single spot. Is there anyone who can confirm that that’s how it works?
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Greg said
I’ve always thought that, in terms of evaluating an ad-driven business, the best metric was “net effective CPM”. In other words, you take total advertising revenue divided by total impressions. If you’re charging a $20 CPM but only selling half your impressions, your NEC is $10. But for some reason, it doesn’t seem to have caught on, probably because companies are about as likely to divulge their sell-through rate as Dick Cheney is to divulge his inner feelings.