Video Ads Cost Roughly Same As Banners

    December 18, 2007

The price of video ads are $10 – $90 per thousand views according to a report out today.

WebVideoReport wrote an article that reviewed the ad sales web pages of eight sites that sell video ads.  The prices noted are public asking prices which are typically discounted or included at low cost or free with purchase of other web ad inventory. 

Only three of the eight sites provided their rates on a standard CPM basis: – $90 CPM
Metacafe – $35 CPM – $25 CPM 

Other rates mentioned in the article:

» A video ad in the Garfield’s Ad Review feature costs $15,200 for four weeks.

YouTube » YouTube requires a $50,000 spend within 90 days and up to $100,000 per day on the YouTube front page. No CPM mentioned.

Video advertising on the Internet is still nascent and you can bet that it is heavily discounted to get mainstream advertisers to try it. One of the obstacles for large advertisers is that outside of YouTube very few sites have enough video views to deliver significant consumer reaction.

And even with YouTube unless you are a company used to advertising on America’s Funniest Home Video’s their audience may not be too appealing to you.

What is more promising is business video evidenced by the premium pricing demanded by the Wall Street Journal. In our testing here at WebProNews we have also seen reasonable demand for our business related videos.