Group M Chairman Irwin Gotlieb: Web Video Prices Likely to Fall

By on 12/19/2012 3:27 PM @daisywhitney

Don’t bet on higher video CPMs in 2013. Even as demand rises for Web video, prices for video ads aren’t likely to increase, says Irwin Gotlieb, chairman of global media investment company Group M, in an interview with Beet.TV. We spoke to the media thought leader about video consumption and how the supply-demand equation impacts digital video.

“If the demand can’t keep up with the growing supply of Web video, what happens to price? It falls,” he says in this video interview. “One of the dynamics in play today is no matter how much we increase our demand for Web video, prices aren’t going up. The allocation model isn’t based on dollars; it’s based on impressions.”

However, some of the premium sites are seeing higher prices for inventory, but by and large, Gotlieb doesn’t expect CPMs to rise in digital video; a decrease is more likely.

When it comes to devices, he says marketers don’t care whether a video is viewed on a TV, computer, table or mobile phone as long as the consumer is exposed to the ad. The bigger distinction lies in whether viewers are “snacking” on programs or not.  ”If you are on YouTube and consuming short content, you are in a much different mindset than if you are watching a half-hour TV show or one-hour drama. The way you receive messages in a snack mode is different than in a full meal mode,” he tells us.

GroupM is the media unit of London-based WPP.

Daisy Whitney

This video is part of a series of interviews with industry leaders, presented by FreeWheel.

Recent Videos
image
Comcast Acquisition is Powering FreeWheel’s Global Expansion

COLOGNE – Video ad management platform FreeWheel is looking to international and ecosystem growth following its recent acquisition by cable operator Comcast. “We’re powering ad decisioning and management for 90% of broadcast community in the US,” FreeWheel’s global solutions and ...

image
Multiple Currencies will Drive Programmatic Video Growth, LiveRail’s Arnstein

COLOGNE — With Nielsen’s OCR, comScore’s vCE and others vying to be the yard stick by which buyers and sellers measure online advertising, is the industry approaching a Betamax moment, in which a single standard will win out? That doesn’t need to happen, says one digital ad exec. ...

image
Death Of TV Is Greatly Exaggerated: GroupM’s Rob Norman

COLOGNE — Some digital media transitions aren’t that pronounced and TV isn’t such a problematic medium after all, says one of the leading ad agencies’ top digital thinkers. “It’s very easy … to take a view that the fast-streaming, uninterruptable, buffer-free, ...

image
Brightcove’s New Player Fights Ad-Blockers

AMSTERDAM — Video technology vendor Brightcove last week unveiled Perform, a new service offering publishers its HTML5 video player with analytics, content protection and ad insertion built in. One other feature signifies a war on the ad blockers: “By being able to circumvent ad blockers, we ...

image
Yahoo Evolves Branded Content Approach with Tumblr

COLOGNE  – Yahoo has been involved in branded content for many years, but its strategy has evolved in recent months to become more tailored and also tumblr-centric, says Patrick Albano, VP and Head of Advertising Solutions at Yahoo EMEA, in an interview with Beet.TV. Yahoo purchased tumblr last year ...

image
Programmatic Video ‘Three Years Behind Display’: Videoplaza’s Muehle

AMSTERDAM – So-called “programmatic” techniques for controlling and targeting online ad trading are already revolutionizing sales of static display ads; but video is later to the ad-tech party. Display has been like this for a while. Video is two to three years behind,” London- and ...

518417638_1_648_367
HTML5 Video Caters To Savvy Scandinavians: Smartcom:TV’s Larssen

AMSTERDAM — Scandinavian consumers are ahead of the curve when it comes to technology adoption – and that means the video industry must cater for what is one of the world’s first mobile-viewing markets, says one exec from the sector. “We are early movers in the technical industry; our ...

518417263_1_648_367
Opera Sees HTML5 As Cure For Video Fragmentation

AMSTERDAM — Everyone knows how splintered the online video industry is. Opera Software, a veteran web browser maker, reckons TV can learn a thing or two from web standards. “The big problem in the TV market is, everything is fragmented,” Opera Software product management VP Frode Hernes ...

image
Data-Driven Advertising & Targeting Spur Online Video Spending, Forrester’s Joyce

COLOGNE, Germany — Data and addressability are two trends that are driving increased spending in online video, but also are posing challenges for the business, says Richard Joyce, Senior Analyst with Forrester Research, in an interview with Ashley J. Swartz, Founder and CEO of Furious Minds for ...

image
Premium And Long-Tail Video Are Blending: Brightcove’s Jain

AMSTERDAM — The highs and lows of video content production are colliding as amateur and pro-am producers start making output that looks increasingly good to broadcast execs. “One really interesting thing is the democratization of content,” Brightcove media SVP and GM Anil Jain tells ...

image
Programmatic Display Is Dress Rehearsal For Video: Trade Desk’s Green

COLOGNE — Static display banners may have been the first ad format to undergo the “programmatic” ad-trading revolution – but the spending there will be dwarfed by video’s adoption of the techniques, says one exec working in the field. “Display is essentially the dress ...

518414754_2_648_367
Video Ad Platform Videology Aims for Universal Mobile ID

COLOGNE, Germany —  The cookie-less nature of the mobile market is challenging for marketers, but video tech vendors are working closely with partners to overcome those inherent hurdles, said Jana Eisenstein, SVP Global Accounts at video ad platform Videology, in an interview with Ashley J. Swartz, ...

loader