YouTube is unveiling today the deployment of animated Flash ads that are included in select videos and are being sold on a $20 CPM (cost per thousand impressions) basis. The ads have been in tests for months now. Across “millions and millions of tests,” the ads have performed “5 times to 10 times vs. traditional display advertising.” Continue Reading
So where did you get teh $20 CPM rate from?
I read at other places that they were putting ads on 20% of the video but did not see the CPM rate being published.
“Continue reading” link is defunct.
Hi,
“Continue Reading” link is not working at 10:49PM PDT. Please fix this.
Thanks,
Mukul.
The correct link is here
http://newteevee.com/2007/08/21/youtube-rolls-out-in-video-ads/#more-1888
The NYT news story quotes a Google employee as saying that they “would charge advertisers $20 for every 1,000 times the ads were displayed”. This means for every 1% of CTR, then eCPM is $0.02. I am new to all this ad business. Is my logic right?
Oh stupid stupid me…. sorry guys…. the link is fixed.
My arithmetic is all wrong. My arithmetic on the paper was one thing and wrote another thing. Each click through is worth 2 cents; 1% click through rates is equivalent to 10 click throughs, which is worth 20 cents. Hence the eCPM is 20 cents.
Thanks Chetan.
that seems pretty high, almost as high as tv!
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If they can count on users to accurately categorize videos, I think $20cpm is fair. You’re at least showings ads to the right demographics.
Everything always works well when its novel and new.