Cross Channel Media Costs Comparison CPM Basis by Augustine Fou

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CPM of broadcast TV advertising, CPM of cable TV, CPM of radio, CPM of Internet advertising

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Cross Channel Media Costs Comparison CPM Basis by Augustine Fou

  1. 1. Broadcast TV $20 cpm Cable TV $18 CPM Radio $5 cpm Magazines $20 Newspaper $35 Out of Home $4 Internet $11 Direct mail $40 CPM Comparative Media Costs Cost per Thousand (CPM): Cost to reach 1,000 users or impressions Source: OAAA, 2011 Augustine Fou- 1 -
  2. 2. U.S. Ad Spending by Media Source: eMarketer, August 2013 eMarketer shows TV still growing strongly Digital will continue to grow at the expense of print and other offline forms
  3. 3. Comparative Media Costs Cost per Thousand (CPM): Cost to reach 1,000 users or impressions Source: Morgan Stanley Research 2010 Broadcast TV $28 Radio $10 Magazines $16 Newspaper $16 Out of Home $5 Internet $3 Traditional vs digital media costs Traditional media CPM Digital media CPMs Comparing costs of various media Relative costs of media how do media costs compare media costs compared Understanding the Economics of Digital Compared to Traditional Advertising and Media Services Digital media compared to traditional advertising digital versus traditional marketing Augustine Fou- 3 -
  4. 4. Comparative Media Costs Cost per Thousand (CPM): Cost to reach 1,000 users or impressions $450 $250 $140 $30 $15 $7 $2 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Direct Mail Mail Order Catalog Drive Time Radio Prime Time TV Online Video Ads Online Display Online Search pay for mailing costs Offline: w/o Unit Costs ONLINE: WINNER pay for media costs no mailing or media costs Offline: w/ Unit Costs Augustine Fou- 4 -
  5. 5. Comparing Costs of Media Normalizing with cost to reach 1,000 users or impressions Augustine Fou- 5 - Source: AP March 10, 2013 Elle Magazine Circulation 1.1M eCPM: $141 Superbowl 2013 Audience 108M eCPM: $37 Websites/Digital Target Audiences eCPM: $1’s of dollars
  6. 6. Advertising CPMs (Offline) Cost per Thousand (CPM): Cost to reach 1,000 users or impressions Augustine Fou- 6 -
  7. 7. Online Video CPMs Cost per Thousand (CPM): Cost to reach 1,000 users or impressions Augustine Fou- 7 -
  8. 8. Dr. Augustine Fou – Agency Czar “I advise clients on using different formats of digital ads and defining clear metrics to show business impact and ROI; and to integrate and unify marketing activities across channels.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou
  9. 9. Related Slideshares Display Search Social CTR Benchmarks By: Augustine Fou, March 11, 2013 Left Side is Branding, Right Side is Performance By: Augustine Fou, March 12, 2014 The Facebook Ad Scam By: Augustine Fou, April 12, 2012 Facebook Advertising Benchmarks By: Augustine Fou, May 29, 2009 Cross Channel Media Cost Comparison By: Augustine Fou, Feb 4, 2014 Augustine Fou- 9 -
  10. 10. APPENDIX
  11. 11. Spot TV CPM Trends $34 CPM in 2014 Source: TVB 2014
  12. 12. Network TV CPM Trends $25 CPM in 2013 Source: TVB 2014

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