A client dropped me a note this morning and asked me what are the going rates for online ads and pre-rolls. Instead of replying with two words, IT DEPENDS, I did a little digging around…and here’s what I said (with names and specific sports category omitted).
The first thing I found was Mary Meeker’s awesome State of the Internet Report which shows: Read
But this chart is a broad average. If we are talking about CPM for banner ads or video pre-rolls, and assuming the prospective buyer is trying to reach fans of a specific sport or team (not just sports fans in general, or adults, or some other general demographic segment), then I’d say:
$10 to $20 CPM (page views)
$20 to $50 CPM (Video pre-roll)
These rates are higher than the general market average, and that’s intentional. From what I’ve seen, the key to earning premium CPM is to package your unique audience and tailor marketing programs for sponsors (rather than selling pure media).
Along these lines, you might find this article interesting
There are two main trends which will impact your pricing:
1. Downward pressure caused by inventory glut – Facebook, along with ad “networks” and “marketplaces” tend to commoditize impressions because they can’t possibly sell all the impressions they create.
2. Upward pricing trends as Internet rates come in line with other (declining) media – traditional media have long enjoyed (relatively) healthy CPMs compared to what’s happening with digital. Some think digital will increase in value…I say, that’s only going to happen if (sellers) learn to sell. For more on this, read this article
These slides taken from Mary Meeker’s annual 2010 Internet Trends deck – here it is
This report comes from Adify, and data is only from its ad networks…but it looks pretty useful:
Here’s some video info:
YOUTUBE IS HELPING DRIVE THE OVERALL VIDEO CATEGORY read
YouTube is having more success this year selling premium ad inventory. In addition, since YouTube drives most of the video viewing online (about 40%, according to comScore) it is helping the entire category meet aggressive near-term analyst forecasts. Specifically:
• Run-of-network pre-roll inventory is generating $10 to $15 CPMs.
• Overlays are around $8 to $10 CPMs.
• In addition, the company is receiving CPMs of between $5 and $6 on its homepage leaderboard banner ad with daily buys that can range from $200K to $300K.
And revenue per unique user chart :
At the end of the day it is incumbent on the publisher to know its audience, and create opportunities for advertisers and sponsors to engage with this audience. The better we package our engagement platforms, and the more valuable our audience, the higher price we can charge for our impressions, and the higher the value of each and every unique visitor.
Meanwhile, one question my client didn’t ask (but is certainly worth asking) is this: what is my mobile audience worth?
Mary Meeker says that within the next 5 years, more users will connect to the Internet via mobile devices than desktop computer. read