Ad Rates On The Web
Via Bloomburg:
Television programs such as “The Simpsons” and “CSI” are for the first time commanding higher advertising rates at Web sites including Hulu.com and TV.com than on prime-time TV…
Marketers typically pay $20 to $40 per thousand viewers for a prime-time ad. On Hulu, which began offering shows to the public in March 2008, an ad on the animated series “The Simpsons” costs $60 per thousand viewers, Michael Nathanson, an analyst at Sanford C. Bernstein & Co. wrote in a June 18 report…
A “Simpsons” episode on Hulu has just 37 seconds of ads, Nathanson wrote. A broadcast episode has nine minutes and produces three times the revenue per viewer at half the price, he estimated.
“The networks should be very careful that the move to the Web does not cannibalize the core business,” Nathanson wrote.
Web advertising is very interesting, because it puts some strong correlation into the ROI with the CPM paid. For so long newspapers were able to charge extreme CPM rates based on assumptions that everyone in the house read the paper and passed it along to 1.5 people. Now with the web, we can start see more what the ads actually do. And so the media buyers freak out when they see the cost of newspaper ads compared to online.
I can’t speak to television CPM rates, but I’m assuming the tv industry will experience snapback.