Video Ads are becoming a major buy for advertisers around the globe. Top Fortune 500 companies invest millions in video ads to engage with their customers, promote new products and remarket existing products. Video ads have the highest level of engagement and brand loyalty and thus the way forward for marketers and ad agencies. Also, programmatic ad serving in US alone reached close to $22 billion in 2016. Both advertisers and publishers are cashing on video ad formats as the future lies in video advertising. In today’s post, we’re going to discuss the video ads CPM rates around various industry channels and how publishers can monetize their video ad inventory and earn higher revenue.
Benefits of Running Video Ads for Publishers
- Video ads offer higher CPM rates which mean additional revenue for publishers.
- The right kind of video ads engages well with the visitors.
- Video ads open new monetization streams for publishers.
Video Ads CPM Rates in 2017 for Publishers
These days, video ads are programmatically served and require a good volume of US, Canada, and tier 1 traffic for monetization since the largest pool of advertisers who spend on video ads are in this geography. Also, there are a number of video ad networks apart from Google Ad Exchange which advertisers use to purchase media, and thus tieing up with them would result in additional revenue. However, for publishers, video ad serving has certain limitations. You need to have good video inventory and a substantial volume of tier 1 traffic to encash on video ads. Listed below, are the video ad CPM rates of the most popular ad networks.
YouTube CPM Rates 2017
Youtube CPM rates for publishers vary hugely and depends on the audience targeting of the advertisers. A publisher can get USD 5 to USD 10 for US and Canadian traffic. This means, the advertisers are spending around USD 10 to USD 20 for trueview ads on Youtube. Again, the average www CPM rates for Youtube tends to be around USD 3 and goes down when it comes to popular niches like viral content, Bollywood etc. The rates are always higher for tech and marketing segment. There are a number of YouTube video ad formats, the one that brings the maximum revenue is the trueview instream ads.
Ad Exchange Video CPM Rates 2017
Publishers can signup with Google AdExchange via any of the Certified partners and can get started with video ads. The ad exchange cpm rates varies and depends on a lot of factors including the geography, engagement, click-through-rates and more. Also, publishers have the option to choose from the following ad types which they want to show on their video inventory.
Pre-roll video ads
Mid-roll video ads
Post-roll video ads
Also, you’ve the option to include overlay ads along with trueview and skippable ad units to compete with the network. Let’s take an example of the type of ad formats available for publishers in ADX. As you can see below, there are few terms which we need to take a note of
Video Ad Types and Terms Explained
These are the video ad formats which are available to the advertisers in Ad Exchange for your video inventory.
1) Non-video ads– These are non-video ads but are served since Ad Exchange failed to show a video ad type on your inventory and thus, back-fills with non-video ads.
2) Standard Instream- Standard instream ads range from 0:15 seconds to 0:30 seconds where you can’t skip past the ad.
3) Trueview+ Skippable Instream- With TrueView in-stream ads, viewers have the option watch the ad in full or to skip the ad after viewing it for 5 seconds.
4) VPaid- VPaid is an ad technology and the ads served in this format are termed as vpaid ads.
5) Video App Promo- These are basically video ads which promotes a Play Store or an Appstore app. Such type of video ads tend to have a Click here URL which takes the visitor to the destination specified by the advertiser, should a visitor click on it.
Here is a list of terms which you need to be aware of, and I believe this is just a repetition as most of you are akin to these terms.
Ad Request- When the player requests a video ad, it is termed as ‘ad request’.
Match Request- If the ad network can match an ad based on the video player’s request, it is termed as a matched request.
Coverage- It is the percentage of the matched request by ad request.
EstimatedRevenue- The total revenue generated by the ad type.
Ad Impressions- The actual number of ad impressions which are served to the viewers is called ‘ad impressions”. It is always lesser than the matched request and the discrepancy is more technical like ad timeout, etc.
Ad eCPM- It is the ad revenue per 1000 viewable impressions.
As you can see here, the majority of the revenue is brought by true-view skippable ads. Also, the CPM rate is around CAD$ 10 which is quite good compared to the standard CPM rates for display ad units. These video CPM rates are particularly for traffic coming from tier1 and tier 2 traffic. Also, the video app promo ads have a low CPM rate of around CAD$ 2 which needs can be improved. As a publisher, we don’t have control over what type of ads will be shown on the video inventory and there is little we can do with video ad optimization.
Video Ads CPM Rates in 2017 for Advertisers
The video ad CPM rates can vary a lot and depends on the targeting keywords and the ad network. Monetizepros video guide says the average video RPM is around $3 for YouTube publishers with a network cut of around 50%. This means an advertiser has to pay $6 per 1000 video views on www traffic. The rates further increase if it is targeted specifically to US and Canadian traffic as the competition is quite high for such traffic sources. For direct sale, the average tends to be around $24 per 1000 ad impressions.
Programmatic video ad purchase is on the rise since it targets to the most appropriate audience. Also, programmatic direct is one of the best methods to buy video inventory from publishers without falling in the risk of ad fraud. Thus, to wrap up, publishers should keep an eye on new methods of monetization and keep exploring optimization tricks to further increase their ad revenue. Since good content is the heart of monetization, we should always build a business model where we can focus on add value to the end users.
If you require any help in getting started with video ad implementation or ad optimization service, feel free to get in touch with us.