With video now becoming, or is, a big part of online marketing success, this article gives you some basics of the various video price structures in use and what each mean to you.
Excerpt: That being said, CPM remains the main tactic for buying reach and scale, so while the price varies depending on the seller and the level of content, this structure is typically more cost-effective than the others. Conversely, advertisers buying on a CPCV and CPE basis are buying with the explicit understanding that someone is actually seeing their ad and are hopefully more likely to remember the brand, so they are going to be paying more. Similar to display, the online video market may never agree on one single pricing model.
As long as we get both sides to understand the differences between the standard pricing models, advertisers will be ensured high impact and scalable message delivery while mitigating wasted spend.
Read full article via MediaPost Publications Cracking Into Video’s Cost Structures 09/13/2012. via Online Video Insider