APRIL 23, 2009
Online ads “all over the place” says one executive.
Data from Jefferies and Company puts a hard number on the cost of traditional ads in 2008.
The firm estimates that broadcast TV had the highest cost-per-thousand (CPM) rate of $10.25, with syndicated TV at $8.77. Magazines, cable TV, newspapers, radio and outdoor advertising round out the space.
As for spending in the online sector... it’s a little more complicated.
“It is very hard to say this is what the average is. The average is made up of some big, big swings, depending on what you are buying.”
A few companies have tried to measure those swings.
For display advertising, Credit Suisse estimated that in 2009 the average CPM will be $2.39, down from $2.46 in 2008.
Pricing for video ads also varied depending on where they were located on-screen. Online video consultancy LiveRail estimated that overlay ads ran CPMs of $7.40 and in-stream ads were priced at $16.40 in Q4 2008. AccuStream iMedia Research put the average 2008 figure as high as $35 for premium preroll online video ads.
As for paid search, JPMorgan projected that for every 1,000 searches, $75.33 would be generated from ads in 2009.
Getting a complete picture of CPMs for the online advertising space is difficult—especially when published rate card prices don’t always reflect reality. But averages and estimates reveal important trends and tendencies.