Overiew of Current Web Video Ads Solutions – Inside the Numbers

What is the current web video marketplace today for advertisers?  What are the options? How much?  This compilation by WebVideoReport documents the going asking rates for different kinds of ads connected to Web video.

Web video is growing rapidly and the solutions are changing.  I’ve been very public about new solutions around social media and I think that they are coming fast.   That being said the one thing that is important is standards.  In today’s marketplace the standards are basic but functional – pre-roll, companion banners, and network buys.  Why?  Comprehensive targeting and behavioral solutions don’t exist yet.  Add another new trend like collaborative ad – where consumer contribute to the ads- and you have really crazy change.  Well for now it’s preroll and companion banners. 

Below is a sample of some of the populare solutions.  There are many left out like PodTech which does custom ad solutions for viral social media, Facebook the leading social networking site, LinkedIn – the leading B2B contact mgt and business social portal, and handful of ad networks.   Outside of PodTech, Facebook, and LinkedIn the rest of the market is similar to what is outlined below.  PodTech, Facebook, and LinkedIn offer an entirely different value proposition than CPM based solutions.  For more on why I think PodTech, Facebook, and LinkedIn are valuable  see my post on Microcontent for Microtargeted environments.

PUBLISHERS
Wall Street Journal
The Wall Street Journal, the flagship newspaper for News Corp.’s Dow Jones company, is building out its video advertising content as an adjunct to the subscription revenue and static Web ads it sells on WSJ.com.

wsjvideo.jpg
Ad rates: The CPM for video on WSJ.com is $90. For more information, see the video sales sheet.

Web video ads offered:

  • A 15-second pre-roll
  • A coordinating 300×250 ad unit that is visible above the content space during the pre-roll video
  • An expandable reminder unit that remains to the right of the video “You Are Watching” headline. When a user clicks “Expand”, the 300×250 unit displayed during the initial video pre-roll ad will reappear, enabling further user interaction.Integration: The Wall Street Journal sells video advertising packages that run across the Wall Street Journal Digital Network, which includes WSJ.com, Barrons.com, MarketWatch.com and AllThingsD.com.

    Past clients: Recent video advertisers include Skyy Vodka, Cisco, IBM, HP, Jaguar, Knight Capital Group and Mercer Consulting.

    CondeNet
    The Conde Nast magazine empire’s online incarnation includes properties such as Epicurious.com, Concierge.com, Style.com, Men.Style.com, and Flip.com.

    condenet.jpg

    Web video ads offered:

  • Pre-roll ads
  • Companion Ads (300×250)Integration: CondéNet has established relationships with major portals including MSNBC, Yahoo!, YouTube and other video sites to distribute its content and accompanying ads.

    Past clients: American Express, Visa, Bertolli, Hilton, Nestle, Haagen Dazs, Charles Schwab

    Ad Prices: Flat Fee Sponsorships or CPM. CondeNet declined to share details on pricing.

    Advertising Age
    This Crain publication, a sister to WebVideoReport.com and TelevisionWeek, is the leading news source covering the advertising industry.

    adage.jpg

    Ad rates: Flat rate for pre-roll only, custom pricing for integrated programs. For instance, a video ad in the Garfield’s Ad Review feature costs $15,200 for four weeks and $124,800 for 48 weeks.

    Web video ads offered:

  • Pre-roll
  • Video in bannerIntegration: AdAge also sells Web-video ads packaged with standard online, print, mobile, RSS feeds, and events

    Past clients: A&E, Video Egg, Meredith

    WEB VIDEO SITES
    YouTube
    YouTube, the biggest video sharing site, hosts user-generated and professionally produced content. The site, a Google subsidiary, is experimenting with ways to wring revenue from its content, offering a variety of Web-video ad formats.

    youtube.jpg

    Ad rates: According to parent company Google’s Web site, advertising on YouTube requires a $50,000 spend within 90 days. On brand channels, advertisers must spend $250,000 across Google and YouTube, including $100,000 or more on YouTube only. A YouTube home page roadblock is a $100,000 per day flat fee plus a $100,000 incremental spend on Google and YouTube within 90 days. The company said on its site: “Currently you can apply to advertise directly with YouTube if you’re willing to spend a minimum of $50K and you’re interested in running a large branded campaign. This advertising option requires an authorized contract or purchase order with YouTube, and ads are served on a reservation-purchase basis, rather than the AdWords auction model.” For more information, click here for their guide. Companies wanting to advertise on YouTube for less can sign up for Google AdWords for as little as a $1 CPM.

    Web video ads offered:

  • Home page video ads
  • Video ads
  • Traditional display ads
  • No pre-roll adsIntegration: Through Google’s content distribution via AdSense, YouTube video units are syndicated to Web sites across the Google Content Network. There have also been integrations, for example, between Google Gadget ads and contests on YouTube.

    Past clients: Adobe, Verizon Wireless, Samsung, BMW, MGM

    MetaCafe
    Metacafe is one of the first generation of video-sharing sites. The site offers short-form, original video content that gives users entertainment breaks. The sites users identify the most popular videos and the site’s producers’ rewards program pays video creators for their best work, as determined by the viewers.

    metacafe.jpg

    Ad rates: Rates range from $10 CPM to $35 CPM, depending on placement. The rate card for pre-roll, and home-page sponsored video units is $35. The rate card for overlay ads is $20, and a static companion ad runs from $10 to $20.

    Web video ads offered:

  • Home page player
  • Search results page player
  • Pre-roll
  • Overlay
  • Companion ads next to pre-rolls and overlays (300×250 to right of player and 468×60 below player)Integration: Metacafe said it offers a range of ad programs, such as basic in-stream options of flash overlays, and pre-roll and post-roll ads. The site also offers accompanying companion units as well as customized home-page programs, mash-up tools, custom content integration, as well as various types of product placement.

    Past clients: Adidas, American Apparel, Axe, American Online, Activision, Barilla, Carlsberg, CanalSat, Canon, Coca Cola, Colgate Palmolive, Dove, Ford, Gillette, Goodyear, Heineken, Heinz, Kodak, Lancome, Lego, LG, Match.com, Merck, Mentos, Microsoft, Miller, MTV, National Geographic, Nike, Nokia, Orange, Orbit, Palmolive, Peugeot, Pepsi, PS2, Playstation 3, Real Networks, Renault, Rockstar, Samsung, Sega, Skype, Snickers, Sony Ericsson, TCM, 20th Century Fox, Ubisoft, Universal Pictures, Virgin, Visa, Vodaphone, Xerox.

    No Good TV
    No Good TV (www.ngtv.com). No Good TV is part of the profusion of ventures creating short content and syndicating it across the Web. The site recently caught the attention of the traditional TV community, and syndicated evening show “Extra” will be integrating No Good TV segments into its Monday-Friday program.

    nogoodtv.jpg

    Ad rates: CPMs range from $15 to $40 and vary based on length of term, extent of exclusivity and customization. All sponsorship agreements are customized for each individual client.

    Web video ads offered:

  • Banner ads
  • Overlays
  • Skyscrapers
  • Alpha video
  • Transitional pages and full channel sponsorship
  • Pre-roll and post-roll (15 seconds or less)
  • No Good TV can also create “parody” pre-roll, post roll and full promotional spots using real products/brands in a humorous scripted vignette.
  • Sponsorship agreements can range from traditional banner ads to integrated original live-action or animated short-form series programming.Integration: No Good TV said it offers customized and strategic product and brand integration into the program content. Advertisers integrated into No Good TV’s show also gain additional exposure on YouTube, which carries a No Good TV channel, which is currently the fourth most-viewed YouTube partner of all time. Additional brand exposure includes event presence and party sponsorships.

    Past clients: Microsoft’s Halo 3, Universal Studios, Sony and Avid

    Break.com
    Break is a video-sharing site that aims to engage young male viewers that advertisers are interested in reaching. The site shows over 12,000,000 videos and 5,000,000 pictures daily.

    break.jpg

    Ad rates: Traditional placements range from $10 CPM to $35 CPM. Rates for video placements and custom sponsorships vary by project.

    Web Video Ads:

  • Flash overlays
  • Pre-roll
  • In video bugs
  • Accompanying companion unitsIntegration: Break lets clients advertise within original content and user-generated content. Break also can integrate brands into its rich media ads. In addition, Break will develop customized sponsorships such as home page programs, content integration, and product placement.

    Past clients: Anheuser Busch, Axe, Burger King, Diageo, EA, Honda, Jim Beam, Keystone, MTV Networks, NBC Universal, Nike, Paramount Pictures, Universal Pictures, Sony Pictures, Verizon, Viacom, Vivendi Games, Warner Brothers Home Video
    SOCIAL NETWORKING SITES
    MySpace
    MySpace, a News Corp. business, is the biggest social networking site. The Web site users set up pages into which they can plant music and video, and MySpace offers entertainment channels with exclusive, original music programs, as well as video shows.

    myspace.jpg

    Ad rates: A pre-roll video in the music section of MySpace.com (15-second video with a 300×250 pixel ad unit) carries a $25 CPM.

    Web video ads offered:

  • Pre-roll
  • Mid-roll
  • 5-second pre-roll bumpers
  • Banners and display ads also live on pages with videoIntegration: MySpace ads are sold solely on MySpace.

    Past clients: Ford, Toyota, Hairspray the Movie

  • New Emerging Solutions:  PodTech, Facebook, LinkedIn

    There are many left out like PodTech which does custom ad solutions for viral social media, Facebook the leading social networking site, LinkedIn – the leading B2B contact mgt and business social portal, and handful of ad networks.   Outside of PodTech, Facebook, and LinkedIn the rest of the market is similar to what is outlined below.  PodTech, Facebook, and LinkedIn offer an entirely different value proposition than CPM based solutions.  For more on why I think PodTech, Facebook, and LinkedIn are valuable  see my post on Microcontent for Microtargeted environments.

    Author: John

    Entrepreneur living in Palo Alto California and the Founder of SiliconANGLE Media

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