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 -
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
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 -
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 -
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
Advertising CPMs (Offline)
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
Augustine Fou- 6 -
Online Video CPMs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
Augustine Fou- 7 -
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
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 -
APPENDIX
Spot TV CPM Trends
$34 CPM in 2014
Source: TVB 2014
Network TV CPM Trends
$25 CPM in 2013
Source: TVB 2014

Cross Channel Media Costs Comparison CPM Basis by Augustine Fou

  • 1.
    Broadcast TV $20cpm 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.
    U.S. Ad Spendingby 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.
    Comparative Media Costs Costper 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.
    Comparative Media Costs Costper 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.
    Comparing Costs ofMedia 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.
    Advertising CPMs (Offline) Costper Thousand (CPM): Cost to reach 1,000 users or impressions Augustine Fou- 6 -
  • 7.
    Online Video CPMs Costper Thousand (CPM): Cost to reach 1,000 users or impressions Augustine Fou- 7 -
  • 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.
    Related Slideshares Display SearchSocial 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.
  • 11.
    Spot TV CPMTrends $34 CPM in 2014 Source: TVB 2014
  • 12.
    Network TV CPMTrends $25 CPM in 2013 Source: TVB 2014