PHOENIX – Demand for digital video among marketers is strong and top publishers are commanding CPMs as high as $40 to $50, says Brett Wilson, Co-Founder and CEO of TubeMogul, a real-time media buying platform.
Sites in the mid-tail with decent content may be earning $8 to $15 CPMs, while lower-end sites are likely only garnering $2 to $7 CPMs, he says.
“Generally, there is a scarcity of digital video. The CPMs for digital video at [top publishers] is quite high so publishers are racing to produce more content,” Wilson says.
He adds that buying models are migrating to the programmatic variety. “We are seeing a big shift from buying media via paperwork to buying through software or programmatically, and there are a set of avant-garde agencies that are embracing that technology.” That’s because programmatic buying enables audience buying, but it also lets marketers launch scaleable campaigns across devices quickly. Agencies can customize the campaigns by the data they include in the buy, Wilson adds.