Online Video CPMs Keep Dropping, BrightRoll CEO Says

By on 09/29/2009 3:36 PM @daisywhitney

Since the company's launch in 2006, online video ad network BrightRoll has seen CPMs for video ads drop by $1 to $1.50 each quarter. "Prices have been inflated and there has been a false equilibrium about scarcity," BrightRoll CEO Tod Sacerdoti told Andy last week at the OMMA summit.

Certainly, steady price drops are a cause for concern (and blood pressure checks for CEOs), but Sacerdoti said he expects CPMs to stabilize shortly in the low teens. When that happens expect more ad money to flow into the Web video business.

The latest market estimates from Magna predict online video should generate $699 million in ad dollars this year.

Brightroll

BrightRoll itself is cracking open some marketer budgets. Earlier this year the company landed a large chunk of a $20 million online video ad spend from the consumer packaged goods company Reckitt Benckiser,
a buy widely seen as a large vote of confidence in online video because Reckitt shifted that money from its TV budget to the
Web.

But don't expect online video to steal dollars from TV budgets, Sacerdoti said. The new money in Web video will likely come from underperforming venues like print and outdoor, he said, adding that Brightroll makes money via a percentage of the ad spend across its network.  Brightroll reaches more than 62 million unique viewers each month, placing it as the 5th largest ad network according to comScore.

Because the ad network business is a bit of a commodity business, companies like Brightroll and its competitors like YuMe, ScanScout, Tremor and BBE regularly roll out new features. Some of the latest additions from Brightroll include its new pricing model that lets advertisers buy based on performance, such as cost per engagement, cost per click or cost per completed video. Also, the company introduced behavioral targeting for ad buys so marketers can segment by demographic, interest and intent to purchase.

Daisy Whitney, Senior Producer

Recent Videos
image
Branded Content Needs Measurement Strategy from Start

CHICAGO — Brands should development a measurement plan when embarking on branded content, says  Tom Weeks, SVP and Group Brand Director at SMG’s LiquidThread  in an interview with Beet.TV. Knowing what to count from the start can set expectations for branded content campaigns, especially when ...

image
Weather Company Pairs Marketers With Moods

CHICAGO — Weather often affects consumers’ moods, and that means it can impact purchase behavior, says DJ Reali, SVP MultiPlatform Sales at the Weather Company, in an interview with Beet.TV. As such, the Weather Company often looks to pair consumer data with weather conditions to deliver ...

image
Enhance the Experience, SMG’s Hoffman Advises for Branded Content

CHICAGO —  Placement on a site and or media channel is vital to ensuring branded content actually reaches consumers and can be viewed, says Jonathan Hoffman, President at ZeroDot/President Experience Design at Starcom MediaVest Group, in an interview with Beet.TV. In addition, brands should think ...

image
No More Ratecards? Sky’s West On Addressable Ad Pricing

LONDON — If every TV ad campaign can be individually targeted, what good is fixed ad pricing anymore? UK satellite and telco provider BSkyB, which this year launched its AdSmart addressable ad initiative, envisages a spectrum of prices for different advertisers. “The conversation has moved on ...

image
For News Video, Go Long: HuffPost Live’s Sekoff

For serious news video, forget Vine’s microscopic content, says the co-creator of Huffington Post’s live streaming video network, HuffPost Live. “The average video being watched on mobile devices is getting longer,”HuffPost live president and co-creator Roy Sekoff tells Beet.TV in ...

image
Branded Content Works Best for Awareness, Agency Execs Concur

CHICAGO — Branded content still plays best as a brand awareness tool, rather than as a direct sales driver, says Vincent Geraghty, EVP and Executive Director of Production at Leo Burnett, in a panel discussion for Beet.TV. “Purchase and sales is a tough thing. When you’re talking about ...

image
Video Not Ready For Programmatic Primetime: GroupM’s Wanck

Digital video won’t follow display down the “programmatic” ad-trading route until publishers are ready and willing, says one of GroupM’s digital division chiefs. “For video to truly become programmatic, the reach will have to increase, there needs to be more ...

image
Facebook Targeting A Boon for Marketers, Havas’ Social Lead

CHICAGO — Facebook is a marketer’s dream for video, but brands need to be smart about how to use the targeting, fan base, and types of video on the social network, says Len Kendall, Director of Social Marketing at Havas Worldwide, in an interview with Beet.TV. “Because of segmentation and ...

image
TouchCast Useful To More Than Just Publishers: Schonfeld

TouchCast, the interactive video platform co-founded by former TechCrunch editor Erick Schonfeld, wants advertisers to start using its new video format as an engaging new ad format. The startup counts broadcasters and newspapers amongst early adopters on the editorial side. “Their people on the ...

image
Brands and Distributors Should Look for Shared Goals in Branded Content

CHICAGO — When embarking on branded content, a marketer should consider what part of its story fits best in that format, Cristel Turner, Director of Brand Advertising, Strategy and Business Marketing at U.S. Cellular, in an interview with Beet.TV. “What doesn’t lend itself as easily to a ...

image
Ziff Davis Enjoying ‘Renaissance’: CEO Shah

When Vivek Shah took over at the helm of PCMag.com publisher Ziff Davis, the company was still recovering after emerging from Chapter 11 bankruptcy protection, continuing to sell off properties. If he says so himself, Ziff Davis under Shah may has turned a corner. “Ziff is probably one of the more ...

image
Comcast Sees Big Growth in C3 VOD Viewing

While TV Everywhere tends to dominates the chatter about non-linear viewing, many cablers are actively marketing and delivering viewers for their existing VOD services. Comcast, for instance, logged its 30 billionth program viewed on demand in the last year and has seen 100% growth in time spent viewing in ...

loader