Are We Paying Too Much for Video?

MediaPost's Online Video Insider reports:

"...Regardless of what you might have heard, we're a long way away from TV dollars moving into online video. It won't happen until average CPMs are in-line with TV, as broadband is not even close to today's TV pricing. The average CPM for broadband video is around $30 these days, with highs in the $70s--that's a hefty premium even against prime-time TV CPMs.

Video buyers--TV or broadband--will make sure their clients' video dollars are invested in the most efficient manner possible. Nor will the transfer happen until audiences are aggregated to some degree for video content that's not music-oriented or reality-based. There hasn't been one broadband "hit" yet (let's say a moderately rated TV show, equaling 10-20 million viewings), except for illegal viewings of TV-aired clips and some user-created content.

Furthermore, some of the broadband branded entertainment prices are outrageous at over seven figures, without any guarantees of program viewings or any understanding of potential audience. The "we don't really know" line is very much unwelcome in today's results-driven marketplace. I'd rather create the content myself, post it with a modest budget on my brand's Web site, YouTube, Revver.com, and iFilm, and save my clients money in the process. Speaking of results, video ads deliver strong results for clients. However, those results often fall short of the ROI multiple versus standard banner ads, failing to justify the excessive premium CPM proposed. "