VIDEO: IN FOCUS
Published: June 16, 2008
What media buyers need to know about video
 
Pricing

CPM or CPC? Advertising technologies in video will force media buyers to think outside number crunching and plan their campaigns more strategically. The media buyer of the past was almost entirely focused on direct response. We now know that ROI data based on direct response measurement like clicks are often inaccurate.

D'Asaro talks about the differences between video CPM and CPC:

"It is our belief that digital -- and non-digital campaigns for that matter -- whether they be measured by direct-response or 'traditional' brand metrics, should be squarely focused on delivering strong ROI for clients and tailored to each individual client's goal," he says.

While the supply for CPM-based, professionally produced content has grown steadily, demand has outstripped supply, causing a general rise in overall cost.

"At this time, through ongoing research, we are trying to determine, client by client, the overall value of digital video as part of the larger media mix," D'Asaro says.

As for digital video purchased on a CPC basis, where viable, whether in-banner or in-stream, the value of purchasing digital video on an action metric will always be appealing to clients.

"Although we would be remiss to measure these placements on a strictly 'direct' basis," he says.

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