Online video CPMs off 14% in 2008

A report released Thursday by online video ad network BrightRoll showed significant declines in CPMs for online video ads. Pre-roll CPM rates for 2008 were down 14.2 percent on average from 2007, and Q4 rates were down 25 percent year-over-year, according to the report.

Many in the industry see this as a positive, however, as the falling rates of placement should drive more ad spend to online video placements. CPMs for online video ads have been around $20 historically, but if the rates continue to fall, more advertisers might see online video as a viable alternative to other ad buys. BrightRoll said a combination of increased buys around professional content and the recession has caused the rates to fall.

And while CPM rates continue to fall, BrightRoll reported that pre-roll continues to gain in popularity, as it was implemented in 83 percent of its campaigns, compared with 63 percent in 2007. The report found that pre-roll continues to be the dominant format, because it outstrips other forms like overlay and post-roll in most audience metrics. 

For more:
- see the MediaPost article here 

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