WebVideoReport has started to put some numbers on the growing online video space. It joins GigaOm’s NewTeeVee in exclusively covering this space, and has put out some interesting articles in the past few weeks.
The latter is interesting because it looks at the CPM rates for a sampling of mainstream online video channels. This includes mostly pre-roll video ads but also looks at video ad overlays, which are beginning to displace a certain degree of pre-roll advertising, thanks to the efforts of companies we’ve profiled here in the past, including ScanScout and Adap.tv.
The verdict: The Wall Street Journal takes the cake for CPMs north of $90, while decidedly more niche-oriented MetaCafe has CPMs from $10 to $35 (including ad overlays care of Adap.tv). Between the two lie a range of price points.
The pricing around ad rates is less established in the world of local video advertising. That’s all being worked out as we speak, and a lot of IYPs and city guides interested in video advertising are feeling around for the right video production vendors and pricing structures (see previous post by Peter Krasilovsky about Idearc’s video pricing vs. that of Citysearch).
In local, the possibilities range between self-service-oriented solutions (a la EZ Show) and those involving original footage shot on location, such as TurnHere. A sliding scale involving price and customization clearly exists here, but given the wide range of SMB categories (and their ad budgets), many price points and corresponding levels of service should be the goal for IYPs.
We’re in the middle of wrapping our arms around the ranks of video producers and local search sites making a play at the growing SMB demand for online video. There will be a lot to talk about.