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
UGC-Based Broadcast is #1 New Syndicated Show in U.S.

LAS VEGAS – The manpower and resources behind local news have shrunk but the time frames have not, leading to a lot of repetition in news programs, says Phil Alvidrez, executive in charge of production for RightThisMinute, a TV show that publishes online video content – and tells the story behind it – ...

image
Dolby Readying “Cinema-Like” Audio for Mobile Video

LAS VEGAS – With the advancement in second-screen and mobile technology as companies like Apple and Amazon rolled out mobile devices that could support high-definition video, consumer expectation for high-quality sound on their tablets and phones increased, says JC Morizur, senior director of professional ...

image
Live Video Streaming Format MPEG Dash Embraced by Akamai, Google, Adobe, Microsoft others

LAS VEGAS – MPEG Dash — the emerging live video format for cross-platform streaming, has picked up considerable traction over the twelve months with the participation of major players including Google’s YouTube, Microsoft’s Azure, Adobe Primetime and Akamai, explains Will Law, Chief ...

image
Microsoft says Streaming Olympics was Turning Point for its New Cloud Offering

LAS VEGAS —  Microsoft’s global, cloud-based platform for delivering video, called Azure, is gaining momentum and customer wins in the aftermath of its successful streaming of the Winter Olympics, says Bob DeHaven, GM of Worldwide Communications and Media, in this interview with Beet.TV The ...

image
Microsoft Announces Support for Fast-Emerging Streaming Standard MPEG-Dash

LAS VEGAS  – One of the top stories from the NAB Show was the accelerated support of streaming  video standard MPEG-Dash, perhaps  most notably with the announcement from Microsoft that it will support Dash with its media solutions. At NAB, we interviewed Iraj Sodagar, Principal Multimedia Architect ...

image
Making Content Marketing Accountable To Drive Business, MediaCom’s Sean Black Explains

Content marketing has always been a part of advertising, but the big difference is that content is finally accountable, says Sean Black, Managing Partner and Group Digital Director at MediaCom, during an interview for Beet.TV with Paul Kontonis, SVP Strategy & Sales at Collective Digital Studio. ...

image
Branded Video Must be Tailored to the “Venue,” Mindshare’s Migliozzi

Branded video performs best when it’s tailored properly to the platform, says Joe Migliozzi, Digital Lead at Mindshare NA, in an interview for Beet.TV with Paul Kontonis, SVP Strategy & Sales at Collective Digital Studio. “The consumers are defining the platforms for the brand. If ...

image
Digital Planning will Come to TV Ad Buying, but Not So Fast, Nielsen’s Amit Seth

SAN FRANCISCO – While measurement tools like Nielsen’s OCR allows TV ad buyers to identify online audiences to match TV buys, which are primarily for “make goods,” there are strong headwinds against changing the way that TV ads are sold via upfronts and other conventional means, ...

image
Old Fashioned, “Mad Men” TV Ad Trading Must Stop: Mediaocean’s Woollard

SAN FRANCISCO — Programmatic ad trading techniques could eliminate costs and cut time by bringing ad buying in to the digital 21st century, says one ad tech vendor. “The way that TV is bought has been the same way since the Mad Men days – I pick up the phone, I do a deal,” says ...

image
Ad Buyers Want Linear TV Sales To Go Programatic, Experts

SAN FRANCISCO — IPG’s insight agency Magna Global is using the current TV upfronts, the annual process by which TV networks sell advertising inventory for the year ahead, to push cable networks to adopt programmatic trading techniques. Says Magna Global USA president Kristi Argyilan: ”We ...

image
‘Programmatic Is Not Just For Performance’: Magna Global’s Brunick

SAN FRANCISCO — Data-driven buying processes beget data-centric advertising. At least, that’s how the evolution of the collection of automated and algorithm-heavy trading techniques dubbed “programmatic” has played out so far. But are things changing? “We’ve put it in to a ...

image
Elemental Technologies Now Powering Video Encoding for BBC iPlayer, Integration with Adobe Primetime

LAS VEGAS – Elemental Technologies, the Portland, Oregon-based video encoding software company is powering the “the BBC iPlayer infrastructure,” says CEO Sam Blackman, in this interview with Beet.TV at the NAB Show. For the BBC and other customers, the video encoding happens increasingly in ...

loader