This could be the year that that online video advertising gains mainstream credibility. Having been adopted by YouTube, pre-roll video ads appear to be establishing themselves as a standard ad unit and consumers are becoming accustomed to a pre-roll being the price you pay for content that’s been recommended. According to TubeMogul CPMs for pre-roll video ads are continuing to increase even as inventory increases. For top tier publishers rates for spots sold in real-time generated a CPM of $10.19, up from $9.93 in the first half of the year.
The fact that online video ad rates are continuing to increase while inventory is increasing is a good indication that online video advertising is getting the attention of mainstream media budgets. Great news for the online video business!
Thanks to Ryan Lawler at TechCrunch for his coverage of this data.
