The Digitalists

New Perspectives on New Media

Posts Tagged ‘Hulu’

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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NYTimes blesses high online video CPMs, whatever they are

Posted by Daniel Granof on November 13, 2009

Trying to find actual CPMs is like being the pilot in that old helicopter joke about Microsoft .  Everyone tells you something about them (i.e. rising, falling, staying the same) without really providing any actual numbers.  Very few people know what CPM an advertiser is really paying or provide any sense of context to that number, making useful economic analysis difficult.

Case in point:  Brian Stelter’s recent New York Times article reporting that online “video ads are booming” for major news sites.    The news sites are supposedly seeing higher CPMs for their video, the article says.  But the only hard data provided is for WSJ.com:  its current rate card lists $75 (advertisers usually pay less than the rate card), up from $50 one year ago.  Of course, 2 years ago its rate card supposedly listed $90, so the trend is not exactly clear.

A few months ago Business Week revealed that Hulu was currently charging an average of $40, down from $50 at some point in the past, while Yahoo! and MSN were charging “half that,” or $20, and YouTube and video ad networks CPMs were still lower. Read the rest of this entry »

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Online Video: Going Mainstream Faster Than Anyone Predicted

Posted by Dan Sachar on January 29, 2009

In the NYTimes today, David Pogue reviews the number of ways NetFlix is now bringing its “Watch Now” service to your TV. What began with 1,000 movies and was only available on PCs, now has 12,000 movies and can be delivered to your PC, Mac, or your television via TiVo, XBox, or Samsung Blu-Ray players (with more deals certain to come). This is just one more example that online video – by which I mean long-form, full-length films and/or TV – is going mainstream faster than anyone predicted.

In particular, I’m thinking of an incident at my most recent job which happened about 6 months ago. I was managing the digital media department for a small cable TV network (which has since suffered a premature demise). My company brought in an esteemed researcher of all things media-related. He conducted an exhaustive survey of online video habits and came to the conclusion that no one is consuming long-form video online and wouldn’t for 5-7 years. In fact, he went so far as to say that the best use of the Internet for content providers was to dole out small, 30-second, promotional pieces that encouraged “tune-in” on-air.

I was stunned. I disagreed with his conclusion. I told him so. Repeatedly. In fact, my colleagues were giving me strange looks throughout the discussions, looks that said, “Dan, you’re getting pretty heated here, maybe you should take it easy.” I will admit that it maybe wasn’t my finest hour when it came to interpersonal diplomacy, but I was passionate about the subject. He was delivering to my company a preposterously dated conclusion based on flawed methodology (more on that below). This was the 2nd half of 2008 and we were being advised that it was to be 5-7 years before anyone watches full-length video online and that content providers should use the Internet to encourage on-air tune-in? Researchers, and almost everyone, have fallen short of the mark in predicting the growth of long-form online video, which is happening much faster than most would believe.

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