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Lucy Griffiths

What Does Video Advertising Cost on the Internet?

21st Sep 2008 Social Media, Video Marketing | No Comments

On the Internet, the written word has always dominated.  Whilst a picture may be worth a thousand words, the word holds pride of place in online marketing and advertising.  However, since the development of fully proliferated wireless access and high performance video technology integrated within the World Wide Web, the power of Video has really come into its own and it’s already becoming a multi-billion pound phenomenon across the globe.

The obvious example of the explosion of video on the Internet is from YouTube.   The most popular video site on the Internet is owned and run by Google, the most powerful search engine company on the planet.  If you want to advertise with a video on the front page of YouTube for a day, it will currently cost you a minimum of £25,000.  Cheap enough if you’ve got that kind of budget.  But what if you haven’t?

Internet analyst David Hallerman suggests that while Paid Search is very effective for direct marketing, nothing grabs the surfer’s ‘heart and mind’ like video advertisements.

Video Advertising is now considered an excellent choice if you want to drive brand awareness and sales.  Research has shown that web users have higher levels of interaction with video than they do with traditional online image ads.  The average surfer will click ‘Play’ on a video far more easily than committing to the click on a Paid Search ad.

Google have recently brought together the idea of PPC (Pay per Click) with Video Advertising in attempt to make the most of these rapid changes in the online advertising market.   Like their PPC campaigns, marketers bid the maximum that they would pay per CPM (Cost per 1000 impressions).  Google claim to offer a guarantee against overpaying by reducing the cost you actually pay to one cent more than the nearest next bid.

There are alternatives to the YouTube/Google monopoly, if you want to use Video Advertising as part of your marketing campaign.  Many video advertisers charge via CPM.  This type of advertising has exploded in the US, where sites such as MySpace offer a short 5 second video display at a cost of $25 per CPM.  At the other end scale, the Wall Street Journal charges $90 per CPM.

In the UK, local search site SCOOT already offers video advertising deals.  By building on their relationship with media group ITV, they offer localised video ads around online television programming.  With SCOOT, 25,000 plays is just £500.  Other companies offer more bespoke services and are therefore reticent to publish prices.

Recently, the Guardian predicted that by 2009, Internet Video advertising would outspend traditional television advertising for the first time.  By 2012, it’s considered that £361 million will be spent on Internet Video advertising in the UK alone.

By 2009, to actively compete in the global marketplace, Video Advertising is an area of your online marketing campaign that you simply must factor into your budget.  Whilst the costs are currently high with the most obvious main providers like YouTube, more cost effective video advertising services are being made available from smaller sources all the time.

If you can see video forming part of your marketing stratagy, take a look at our Video Marketing Services to evaluate whether we can help you.

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About the author

Lucy Griffiths

Lucy is an Internet Search Specialist focusing and working with clients on Search Engine Optimisation (SEO) and Pay-Per-Click (PPC) strategies.

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