Comments on: Implications of the online video explosion http://www.lostremote.com/2007/03/12/implications-of-the-online-video-explosion/ Where TV Finds the Future Sun, 07 Sep 2008 08:50:32 +0000 http://wordpress.org/?v=2.5.1 By: Cory http://www.lostremote.com/2007/03/12/implications-of-the-online-video-explosion/#comment-223978 Cory Tue, 13 Mar 2007 06:20:22 +0000 http://www.lostremote.com/2007/03/12/implications-of-the-online-video-explosion/#comment-223978 Rocker, good points, and by sheer volume I mean amount of video plus consumption, or streams served. Look at the blogs. Even niche blogs with respectable audiences are struggling to pull a decent CPM. Most run Google ads for an average of $1 CPMs. There's too much inventory. Federated Media, which runs ads across a network of high-quality niche blogs including Lost Remote, does better on the CPM front, but not as well as you might think. There's a lot of novelty and excitement built into current video CPM pricing -- I've heard some as high as $50 for news video -- and I anctipate this will drop over the next couple of years. Again, there will be too much inventory. Rocker, good points, and by sheer volume I mean amount of video plus consumption, or streams served. Look at the blogs. Even niche blogs with respectable audiences are struggling to pull a decent CPM. Most run Google ads for an average of $1 CPMs. There’s too much inventory. Federated Media, which runs ads across a network of high-quality niche blogs including Lost Remote, does better on the CPM front, but not as well as you might think.

There’s a lot of novelty and excitement built into current video CPM pricing — I’ve heard some as high as $50 for news video — and I anctipate this will drop over the next couple of years. Again, there will be too much inventory.

]]> By: Dan http://www.lostremote.com/2007/03/12/implications-of-the-online-video-explosion/#comment-222410 Dan Mon, 12 Mar 2007 20:36:05 +0000 http://www.lostremote.com/2007/03/12/implications-of-the-online-video-explosion/#comment-222410 Cory, Why do you think the following (from your article) "Long-form advertorial and advertainment video will become the norm". ? I produce infomercials and was wondering what is happening today for you to predict this? Dan Cory,

Why do you think the following (from your article)
“Long-form advertorial and advertainment video will become the norm”. ?

I produce infomercials and was wondering what is
happening today for you to predict this?

Dan

]]> By: Rocker http://www.lostremote.com/2007/03/12/implications-of-the-online-video-explosion/#comment-222211 Rocker Mon, 12 Mar 2007 19:19:32 +0000 http://www.lostremote.com/2007/03/12/implications-of-the-online-video-explosion/#comment-222211 Agree with the general thrust of your post, Cory, but "sheer volume of online video will push down ad rates"? I don't think so. Rates are not a function of the amount of video, they're a function of the amount of time consumers have (opportunity for exposure), and they're not making any more of that. And as more and more of what consumers view is not available to advertisers, the more the premium will go up on what is. That, combined with the inherent higher R.O.I. on targeted ("niche") content, should actually serve to drive up effective rates. The other factor is the convergence of the traditionally separate "advertising" and (larger) "promotion" marketing budgets, which means the sources of funding for this advertising have significant upside. Agree with the general thrust of your post, Cory, but “sheer volume of online video will push down ad rates”? I don’t think so. Rates are not a function of the amount of video, they’re a function of the amount of time consumers have (opportunity for exposure), and they’re not making any more of that. And as more and more of what consumers view is not available to advertisers, the more the premium will go up on what is. That, combined with the inherent higher R.O.I. on targeted (”niche”) content, should actually serve to drive up effective rates. The other factor is the convergence of the traditionally separate “advertising” and (larger) “promotion” marketing budgets, which means the sources of funding for this advertising have significant upside.

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