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@ SIIA: Online Video CPMs Remain Stable, As Brands Look To Do It On Their Own

A modest proposal for future conference panels covering online video: there ought to be a moratorium on sampling Gil Scott Heron’s “The Revolution Will Not be Televised.” Heron’s introduction, which was excerpted earlier this week at the AlwaysOn Media NYC conference, was also employed to open a visual survey of last year’s most watched online videos for a panel on the medium’s business model at the SIIA Information Industry Summit.

CPMs: Business and finance tends to earn the highest CPMs, though inventory is a problem, said Ken Doctor, an analyst at Outsell and the panel’s moderator. Ian Blaine, CEO, The Platform: If it’s known content from TV, the CPMs are much higher, name-brand advertisers like to attach themselves to it, so I see CPMs remaining stable. But for unknown content, it’s going to remain a struggle.

Brands doing for themselves: Shoba Purushothaman, CEO, The NewsMarket: Brands are taking a more active approach to online video. They are becoming media companies in their own right. Look at Studio Dell, the audience is coming to them and they have multiple channels. Two years ago, you had the failure of Bud.tv. But brands have learned from that and you will see more more brands doing this sort of content creation. In particular, healthcare companies are seriously looking at this more than other industries. They have zero costs for setting up their own channel. That’s what motivates Dell, which asks why they should be paying CPMs to someone else.

Context and discovery: Sean Morgan, CEO, Critical Mention: Contextual is the best model, producing much higher click-throughs. But in terms of making video ads more appealing to advertisers: “Video on the net today is in a browser format. There’s usually very little text involved except for the title. That makes it hard to find and match advertising against it. The focus needs to be changing it from a browser-format to one that’s discoverable. That will drive relevancy.”