Monday, October 08, 2007

Video Advertising Earns Its Higher CPM

The TV networks are charging more per thousand for ads on streamed shows than for live TV, which one analyst Tsays ain't right. But the networks are appropriately pricing based on value.

While Nielsen provides demographic data based on surveys, the networks can (with one time registration and cookies) more accurately track viewers. The sought-after 18-49 demo is also more likely to be watching online than other groups as well.

Streaming viewers can't skip past ads via DVRs and are less likely to leave the room and not see the ad. The biggest advantage is that interactive ads can get an immediate response from viewers on their PCs (such as signing up for an offer or contest), something that's still not done today through televisions. So a better demographic, more likely viewing, and interactivity are 3 reasons why advertisers should be willing to pay more online.

By John Gartner at 09:56 AM | Comments (0)

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