SQAD Analysis: In-Stream Video Ads 60% More Expensive Than Cable TV Ads In 2014

-- Average CPMs for Cable, Network and Display Declined in 2014 --

Apr 08, 2015, 09:30 ET from SQAD LLC

TARRYTOWN, N.Y., April 8, 2015 /PRNewswire/ -- SQAD LLC, the largest independent provider of global business solutions for planning and managing advertising investments, today announced the results of its 2014 advertising cost analysis for TV and Internet. SQAD analyzed proprietary advertising cost data for Cable TV, Network TV, In-Stream Video and Display utilizing SQAD's WebCosts and NetCosts databases, and found that the average CPM for an in-stream ad in 2014 was $24.20, or 60% more expensive than the average A18-49 CPM for Cable TV, which came in at $15.11.

Network TV was the most expensive advertising medium with an average CPM of $43.06 in this period. Though Network TV commanded the highest pricing, CPMs for both Network and Cable TV ads decreased in 2014. The average A18-49 CPM for a network primetime ad in 2014 was $43.06, down 2% from $44.11 in 2013. Cable TV primetime A18-49 CPMS were down 3% to $15.11 in 2014 from $15.63 in 2013. Display ads were the least expensive medium, and 72% cheaper than in-stream video, with an average CPM of $10.85.

"Many of the highest in-stream video CPMS reported in December had some kind of network or cable affiliation such as CBS, FOX, NBC or CNN," said Tom Adams, Director of SQAD WebCosts. "This leads us to believe that traditional cable and network TV continues to heavily influence digital in-stream video CPMS."

In 2014, the combined average CPM for NBC Universal ($34.56), CBS Television ($29.92), and ABC Television ($22.41) was about $29.00, which is around $5.00 more than the $24.20 all category, in-stream average. Well known Cable entities like NBC Sports, the Golf Channel and Bloomberg TV also ranked high in average CPMS for the year.

WebCosts has been tracking display CPMS since January 2010 and in-stream video CPMS since the beginning of 2013. From 2013 to 2014, WebCosts increased the number of sites reporting in-stream video by more than 50%.

About SQAD

SQAD's® mission is to provide its global clients with business intelligence to effectively plan and manage their advertising investments.  Recognized as the premier provider of media planning software (Mediatools™), data analytics tools (WRAP), and the industry standard in cost forecasting for national TV (NetCosts™—network TV, cable and syndication), Spot TV, Hispanic Spot TV Plus, Spot Radio and the Internet (WebCosts®). SQAD provides media planning solutions and reliable media data to advertising agencies, buying services, advertisers, television and radio stations, cable operators, program syndicators and Internet publishers. Established more than 25 years ago, SQAD serves over 1,500 clients. For more information on SQAD, visit www.sqad.com.

Media Contact: 
Stephanie Dressler 
Dukas Public Relations 
(646) 808-3701 
stephanie@dukaspr.com

 

Photo - http://photos.prnewswire.com/prnh/20150408/197257

SOURCE SQAD LLC



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