Web Video Takes Off, Ads Trail

Article found on Forbes:

"(...) The relative scarcity of online video ad inventory has caused the cost per thousand impressions to climb about 15% to 20% this year, estimates James Kiernan, vice president and associate director of digital media and innovation at MediaVest USA in New York. While a 30-second ad during a prime-time broadcast TV show typically fetches a CPM rate of about $20, a 15- or 30-second online video ad currently commands a CPM of around $20 to $50, Kiernan says. Another stumbling block for mainstream advertisers is figuring out what kind of ads a Web user can stomach. Most of the video on the Web runs for just a few minutes. That means most Web sites with video content dare not tack on more than one "pre-roll" ad, which run before the clip itself, for fear of scaring off viewers.(...)"