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
New Standards Around Native Units Mean Big Opportunities for Publishers, PubMatic’s McDonald

While much has been said about the opportunities for publishers to create bespoke content for advertisers, for the medium to scale there needs to be standards so the units can be widely shared and sold programmatically,  says Kirk McDonald, President of PubMatic, a global adtech company that serves ...

image
Guardian Labs Mulls Off-Site Branded Content via Programmatic

LONDON — So far, The Guardian division that produces branded content for marketers has published that content only on The Guardian’s own properties. But that could change soon, MD Anna Watkins tells Beet.TV in this video interview. “At the moment, we are looking to confirm one of our first ...

image
Building a Brand Depends on eCommerce, Razorfish’s Denton

The agency of the future needs to be a “data geek,” says Shannon Denton, CEO North America of Razorfish, in an interview with Beet.TV. “They need to understand all kinds of data and how to push it through to the consumer in terms of experiences that show the intelligence and make the ...

Sarah Wood, Unruly
Unruly Brings “Emotional Programmatic” To US Advertisers

If you had tracked two trillion video views since 2006, you would probably know quite a lot about how people respond to video ads. Sarah Wood has, and her video ad tech firm, Unruly Media, is helping brands understand. “What are the drivers of shareability?,” she says. “Some people think ...

image
Programmatic Audio Ads Get ‘100% Attention': Xaxis’ Bidon

LONDON — So far, the discussion of so-called “programmatic”, automated digital advertising trading has centered on online display and video advertising. But what about advertising in content that no-one can see? Last month, GroupM’s Xaxis programmatic unit announced Xaxis Audio, a ...

image
Tracking From Exposure To Closure Is A Reality: eXelate’s Zagorski

If a tree falls in a forest and no-one was around to hear it, did it really make a sound? Many advertisers have asked themselves that question in years gone by, unable to know whether their analog media spend really made a difference. But digital ads that lead to digital actions mean attribution can ...

image
Teads Touts ‘Outstream’ Video Units for Mobile: Le Monde and Forbes Have Integration

Teads, the adtech company that provides publishers with “outstream,” a solution to insert video advertising into editorial pages, launched a mobile SDK in March and it has been adopted by Le Monde and Forbes, says Bertrand Quesada, CEO, in this interview with Beet.TV Quesada sees robust interest ...

image
Expansion Planned for Guardian’s Programmatic Alliance w/ CNN Intl, Economist, Financial Times...

LONDON — Back in March, The Guardian and four other UK publishers with global ambitions announced they were forming the Pangea Alliance, a shared scheme to pool first-party ad data for ad buyers to target their combined 110 million users in a “programmatic”, or automated fashion. In ...

image
WorldNow Creates Consortium for U.S. TV Stations for Digital Ads

WorldNow, a New York-based online video platform provider for some 400 U.S. local television stations, has announced the formation of a consortium to sell national advertising. At the recent NAB Show in Las Vegas, we spoke with Lou Schwartz, Chief Strategy Officer, about the growing IP-delivered ...

image
OVP ‘Stream Monkey’ Touts Analytics Offering and 4K Streaming

Orlando based-Online video platform Stream Monkey is expanding by offering services to media companies, non-profits and enterprises.  One of its key value propositions is its deep analytics around viewers, says Jason Fuhlbruck, in this interview with Beet.TV.   The analytics suite is powered by Akamai, he ...

image
Technology Informs Cannes’ ‘Creative Nexus': UM’s Cohen

Do technology and creativity mix? They do if you are attending this year’s Cannes Lions International Festival of Creativity. “Cannes has evolved over the last couple of years to be this nexus of creativity,” Universal McCann chief investment officer David Cohen tells Beet.TV in this video ...

image
Mobile Video Advertising is Priced at 50% Discount, MMA’s Stuart

Mobile video advertising is pricing at half of what it should be says Greg Stuart, CEO of the Mobile Marketing Association, in this interview with Beet.TV.  He cites data from a just completed two year, $2 million research study undertaken by the MMA with several big brands.   Unlike other forms of ...

loader