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Video Ads 38% Higher Than Cable TV Ads In ’13

2 Apr, 2014 By: Doug McPherson

TARRYTOWN, N.Y. – The average cost-per-thousand (CPM) for an in-stream online video ad in 2013 was $23.03, or 38-percent higher than the average 18-49 CPM for cable TV, according to a report from SQAD, a research firm for TV, radio and digital costs and analysis.

For this report, SQAD says it created a comparison of four of its media databases from a CPM perspective: display, cable TV, network TV and in-stream video.

Network TV was the most expensive advertising medium with an average CPM of $44.11. Display ads trailed the pack with an average CPM of $10.88, and were 72-percent cheaper than in-stream video.

The average cost for both network and cable TV ads increased in 2013. The average 18-49 CPM for a network primetime ad in 2013 was $44.11, up 5 percent from 2012. Cable TV primetime A18-49 CPMs were also up 5 percent to $15.63 in 2013.

“In many cases, online premium video inventory is still somewhat limited, so it’s not that surprising that rates are high right now,” says Neil Klar, CEO of SQAD. “Broadcast TV networks command premium CPMs because of their reach and programming, and they have leveraged those commodities to obtain upper tier in-stream video CPMs.”

Of the sites reported in the In-Stream Video CPM classification, TV Network Websites commanded top positions. In 2013, the combined average CPM for NBCUniversal, CBS television, and ABC television was about $30, more than $6 over the all-category, in-stream average.

The average display CPM in 2013 was relatively flat year-over-year, showing a slight dip of 10 cents from 2012. “For direct, non-exchange, display buys, pricing has remained relatively steady over the past three years, and branded content sites continue to perform well,” says Tom Adams, Director of SQAD WebCosts.

WebCosts has been tracking real display CPMs every month since January 2010, and in-stream video CPMs since the beginning of 2013.

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