In Depth

Price Survey: Cost of Web Video Ads

CPMs, Advertising Options Vary Widely in Different Media Outlets

What does it cost to advertise in the Web video medium? The answers vary as wildly as the range of Web video content itself.

This compilation documents the current asking rates for different kinds of ads connected to Web video.

PUBLISHERS
Wall Street Journal
The Wall Street Journal, the flagship newspaper of News Corp.’s Dow Jones Co., is building out its video advertising content as an adjunct to the subscription revenue and static Web ads it sells on WSJ.com.

Ad rates: The cost per thousand viewers (CPM) for video on WSJ.com is $90. For more information, see the video sales sheet.

Web video ads offered:
A 15-second pre-roll
A coordinating 300x250 ad unit that is visible above the content space during the pre-roll video
An expandable reminder unit that remains to the right of the video “You Are Watching” headline. When a user clicks “Expand,” the 300x250 unit displayed during the initial video pre-roll ad will reappear, enabling further user interaction.

Integration: The Wall Street Journal sells video advertising packages that run across the Wall Street Journal Digital Network, which includes WSJ.com, Barrons.com, MarketWatch.com and AllThingsD.com.

Past clients: Recent video advertisers include Skyy Vodka, Cisco, IBM, HP, Jaguar, Knight Capital Group and Mercer Consulting.

CondeNet
The Conde Nast magazine empire’s online incarnation includes properties ranging from
Epicurious.com and Concierge. com to Style.com, Men.Style.com and Flip.com.

Web video ads offered:
Pre-roll ads
Companion ads (300x250)

Integration: CondeNet has established relationships with major portals including MSNBC, Yahoo, YouTube and other video sites to distribute its content and accompanying ads.

Past clients: American Express, Visa, Bertolli, Hilton, Nestle, Haagen Dazs, Charles Schwab

Ad prices: Flat-fee sponsorships or CPM. CondeNet declined to share details on pricing.

Advertising Age
This Crain publication, a sister to TelevisionWeek, is the leading news source covering the advertising industry.

Ad rates: Flat rate for pre-roll only; custom pricing for integrated programs. For instance, a video ad in Bpb Garfield’s Ad Review feature costs $15,200 for four weeks and $124,800 for 48 weeks.

Web video ads offered:
Pre-roll
Video in banner
Integration: AdAge also sells Web-video ads packaged with standard online, print, mobile, RSS feeds and events.

Past clients: A&E, Video Egg, Meredith

WEB VIDEO SITES
YouTube
YouTube, the biggest video-sharing site, hosts both user-generated and professionally produced content. The site, a Google subsidiary, is experimenting with ways to wring revenue from its content, offering a variety of Web video ad formats.

Ad rates: According to parent company Google’s Web site, advertising on YouTube requires a $50,000 spend within 90 days. On brand channels, advertisers must spend $250,000 across Google and YouTube, including $100,000 or more on YouTube only. A YouTube home-page roadblock is a $100,000-per-day flat fee plus a $100,000 incremental spend on Google and YouTube within 90 days.

The company says on its site: “Currently you can apply to advertise directly with YouTube if you’re willing to spend a minimum of $50,000 and you’re interested in running a large branded campaign. This advertising option requires an authorized contract or purchase order with YouTube, and ads are served on a reservation-purchase basis, rather than the AdWords auction model.” Companies that want to advertise on YouTube for less can sign up for Google AdWords for as little as a $1 CPM.

Web video ads offered:
Home-page video ads
Video ads
Traditional display ads
No pre-roll ads

Integration: Through Google’s content distribution via AdSense, YouTube video units are syndicated to Web sites across the Google Content Network. There also have been integrations, for example, between Google Gadget ads and contests on YouTube.

Past clients: Adobe, Verizon Wireless, Samsung, BMW, MGM

Metacafe
Metacafe is one of the first generation of video-sharing sites. The site offers short-form, original video content that gives users entertainment breaks. The site’s producers’ rewards program pays video creators for their best work, as determined by the viewers.

Ad rates: Rates range from $10 CPM to $35 CPM, depending on placement. The rate card for pre-roll and home-page sponsored video units is $35. The rate card for overlay ads is $20, and a static companion ad runs from $10 to $20.

Web video ads offered:
Home-page player
Search results page player
Pre-roll
Overlay
Companion ads next to pre-rolls and overlays (300x250 to right of player and 468x60 below player)

Integration: Metacafe said it offers a range of ad programs, such as basic in-stream options of flash overlays, and pre-roll and post-roll ads. The site also offers accompanying companion units as well as customized home-page programs, mash-up tools, custom content integration and various types of product placement.

Past clients: Adidas, American Apparel, Axe, America Online, Activision, Barilla, Carlsberg, CanalSat, Canon, Coca Cola, Colgate Palmolive, Dove, Ford, Gillette, Goodyear, Heineken, Heinz, Kodak, Lancome, Lego, LG, Match.com, Merck, Mentos, Microsoft, Miller, MTV, National Geographic, Nike, Nokia, Orange, Orbit, Peugeot, Pepsi, PlayStation 3, Real Networks, Renault, Rockstar, Samsung, Sega, Skype, Snickers, Sony Ericsson, TCM, 20th Century Fox, Ubisoft, Universal Pictures, Virgin, Visa, Vodaphone, Xerox

No Good TV
No Good TV (www.ngtv.com) is part of the profusion of ventures creating short content and syndicating it across the Web. The site recently caught the attention of the traditional TV community, and syndicated evening show “Extra” will be integrating No Good TV segments into its Monday-Friday program.

Ad rates: CPMs range from $15 to $40 and vary based on length of term, extent of exclusivity and customization. All sponsorship agreements are customized for each individual client.
Web video ads offered:
Banner ads
Overlays
Skyscrapers
Alpha video
Transitional pages and full channel sponsorship
Pre-roll and post-roll (15 seconds or less)
No Good TV also can create “parody” pre-roll, post-roll and full promotional spots using real products or brands in a humorous scripted vignette.
Sponsorship agreements can range from traditional banner ads to integrated original live-action or animated short-form series programming.

Integration: No Good TV said it offers customized and strategic product and brand integration into the program content. Advertisers integrated into No Good TV’s show also gain additional exposure on YouTube, whose No Good TV channel is currently the fourth most-viewed YouTube partner of all time. Additional brand exposure includes event presence and party sponsorships.

Past clients: Microsoft’s Halo 3, Universal Studios, Sony, Avid

Break.com
Break is a video-sharing site that aims to engage young male viewers whom advertisers are interested in reaching. The site shows more than 12 million videos and 5 million pictures daily.
Ad rates: Traditional placements range from $10 CPM to $35 CPM. Rates for video placements and custom sponsorships vary by project.

Web video ads offered:
Flash overlays
Pre-roll
In-video bugs
Accompanying companion units

Integration: Break lets clients advertise within original content and user-generated content. Break also can integrate brands into its rich media ads. In addition, Break will develop customized sponsorships such as home-page programs, content integration and product placement.

Past clients: Anheuser Busch, Axe, Burger King, Diageo, Electronic Arts, Honda, Jim Beam, Keystone, MTV Networks, NBC Universal, Nike, Paramount Pictures, Universal Pictures, Sony Pictures, Verizon, Viacom, Vivendi Games, Warner Bros. Home Video

SOCIAL NETWORKING SITES
MySpace
MySpace, owned by News Corp., is the biggest social networking site. Users set up pages into which they can plant music and video, and MySpace offers entertainment channels with exclusive, original music programs, as well as video shows.
Ad rates: A pre-roll video in the music section of MySpace.com (15-second video with a 300x250 pixel ad unit) carries a $25 CPM.

Web video ads offered:
Pre-roll
Mid-roll
5-second pre-roll bumpers
Banners and display ads also live on pages with video.

Integration: MySpace ads are sold solely on MySpace.

Past clients: Ford, Toyota, “Hairspray”

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