Web Video Advertising – How Much Does It Cost?

18 December 2007 Written By: Jim KukralComments: Comments

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Daisy Whitney wrote a very nice article at WebVideoReport.com about costs associated with running video ads, or ads on video on some big sites.

She looked at ad-rates and ad options for a few sites, including the Wall Street Journal, YouTube, Metacafe, MySpace and a few others.

Summary: Get your your wallet and open wide. YouTube won’t even talk to you unless you’re going to spend $50k.

The company said on its site: “Currently you can apply to advertise directly with YouTube if you’re willing to spend a minimum of $50K 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.”

Other sites like MySpace will give you a lower CPM ($25), but I’m sure they also have a minimum buy.

What she didn’t cover is that you will also have other costs like someone to serve your video like Doubleclick or Eyeblaster, who usually charge anywhere from $2.00-$5.00 CPM. You also have the costs of having a web video produced, etc… No, it’s not cheap, but video works.

Great guide though. Check it out.

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  • Saoirse
    Thank you for this information, its really helped with my advertising work at college, especially when I tried to get in contact with these sites asking for a quote and they all ignored me! x
  • Jim,

    I see you are covering the CPM end of things but what about low fixed monthly video advertising. I truly believe www.hotpluto.com will provide options that allow more of the 25 million small companies out there afforable, mobile and far reaching video ad campaigns. Afterall, aren't the Fortune 2000 company's really supporting the market out there?

    I am the advocte for the little guy/gal if you consider SBC's defintion of the "small company" is 500 or less employees. I see them as small to medium when you figure there are really about 15000 companies in the U.S. that fall into the large category.

    We provide a site that creates content and a site that hosts that same content in the form of a Video Advertising Marketplace. We believe in time that it will catch on--especially when you cosider sooner or later all company's out there will need to have a video pressence on the Net.

    CPM was the model for banner advertising and does not have to be the exclusive way to monitize the video advertising industry online. Television advertising has been cost prohibitive to many of those so-called "small businesses" out there. Many of these CPM campagins cost as much as television advertising; case and point--YouTube with the $50k minimum campaign. Video Advertisers can post up to 7 videos on Hot Pluto, post to multiple categories, post their complete business description, get rated by consumers, talk directly to consumers, create and offer online discount coupons and track web statistics--and advertisers on Hot Pluto can do this for 83 years with the same money they would spend with YouTube for 1 campaign! Does YouTube even offer what Hot Pluto does for Video Advertising?

    Just my 2 cents with a litle shameless promotion!
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