Video Ad CPMs: It Pays to Be a Pro

It’s pros before average Joes when it comes to online video ad revenue. That’s the word from a study just released by The Diffusion Group, which forecasts that professionally produced content will grab most of the $590 million video ad market today and the $10 billion video ad market of the future through consistently higher CPMs that those garnered through user-generated content. TVWeek recaps the findings:

  • CPMs for professional long-form video are about $40 now and predicted to rise to $46 by 2013.
  • CPMs for professional short-form video are roughly $30 now and expected to hit $34 by 2013.
  • UGC vids currently get $15 CPMs and are seen rising a little, to $17, by 2013.

Professionally produced content includes work by studios, networks and new media companies like Revision3.

We’ve written before that UGC is expected to account for 42 percent of all streams but only get 4 percent of the video revenue for the next five years, while professional content is forecast to account for 58 percent of all streams and gobble up 96 percent of the revenue. And now we have a better understanding as to how that breaks down.

With speculation running high that YouTube can only monetize 3 percent of its content, this CPM data makes it even more clear why the video-sharing site is doing deals with the likes of Lionsgate.