Prices boom for premium video ad space, plummet for lesser sites

Prices boom for premium video ad space, plummet for lesser sites

Advertisers are paying more for online video space on premium sites but less for space on second and third tier sites than they were five months ago, new research from TubeMogul has revealed.

Cost Per Mille (CPMs) for pre-roll video ads on tier one media sites (including premium broadcasters and magazine publishers) are increasing by 15.4% per month in Australia, according to TubeMogul.

CPMs climbed to $29.44 in January up from $19.69 in October, while all other tiers declined.

Tier four sites were the worst hit, with prices falling to $11.29 in January.

The research also found that completion rates for pre-roll video ads are linked to site quality. Tier one sites continue to lead at 83.3% completions overall, while tier two sites are close behind at 80.1% and tiers three and four average 77.0% and 63.9%, respectively.

For general awareness metrics, just seeing a video ad is often sufficient. TubeMogul found that site quality has very little impact on a viewer’s ability to remember a given brand name or ad.

However, when it comes to getting viewers to internalise a particular brand message, tier one sites stand out. Viewers that watched a video ad on a tier one site remember the brand’s message 5.6% more than viewers that did not see the ad, whereas  viewers that watch the same ad on a tier two or three site remembered the brand’s message only 1.5% more than viewers who did not see the ad. 

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