Excerpts from “How Much Ads Cost” – eMarketer.
(…) broadcast TV had the highest cost-per-thousand (CPM) rate of $10.25, with syndicated TV at $8.77. Magazines, cable TV, newspapers, radio and outdoor advertising round out the space. (…)
As for spending in the online sector… it’s a little more complicated. (…)
For display advertising, Credit Suisse estimated that in 2009 the average CPM will be $2.39, down from $2.46 in 2008. (…)
As for paid search, JPMorgan projected that for every 1,000 searches, $75.33 would be generated from ads in 2009. (…)
What it means: always interesting to compare the CPM of various media. It gives you a good benchmark to calculate revenues needed to counter offline to online revenue migration. Again, no Yellow Pages CPM to compare though. I wonder if someone has made the calculation before for the directory publishing industry.
Hi Sebastian,
After reading your post about CPM and other posts on the same topic, I wonder how can websites owners, even very important ones manage sustain big payroll and make any money!
For example, a site having 10000 daily pageview per day with ads average 3$, would only make around 900$ per month with one ad and 1800$ with two ads.
Is there something missing in my equation?
Best regards,
Georgia
Georgia, you’re absolutely right. It’s one of the big problems with the Web. In offline media (newspapers, TV, etc.), scarcity of ad inventory creates value. On the Web, we’re flooded with ad inventory. So, unless you’re doing niche targeting (either geographical or vertical), your display ads CPMs will be low.
Georgia,
This is true but if you have only 10 000 page views it means you have around unique 1 000 visitors per month.
1 200 visitors
average visits per month 1,5
average page view per visits : 6
page views per month : 10 800
And in tha scenario it means you sell 100% of your inventory and the average from emarketer is at 47%
In any case I don’t think you could survive with so few visitors with an advertising model.
But the average CPM in Quebec is more around 15$-20$ for a good website, I am not talking about run of stock.
Alain & Sebastian,
Thx for your answers. So it tells me that there’s not quite a lot of sites doing enough revenues with advertizing.
How can they survive without the advertising model?
It lets me a little more confused.
Thx again
Georgia