Cross Channel Media Costs Comparison CPM Basis by Augustine Fou

Dr. Augustine Fou - Independent Ad Fraud Researcher
Dr. Augustine Fou - Independent Ad Fraud ResearcherProfessor; Speaker; Author at Marketing Science Consulting Group, Inc.
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
1 of 12

Recommended

Top trends mobile location baseda dvertising - e-marketer by
Top trends mobile location baseda dvertising - e-marketerTop trends mobile location baseda dvertising - e-marketer
Top trends mobile location baseda dvertising - e-marketerAlejandro Quetzeri
1.5K views36 slides
Event Recommendation in Event-based Social Networks by
Event Recommendation in Event-based Social NetworksEvent Recommendation in Event-based Social Networks
Event Recommendation in Event-based Social NetworksLeandro Balby Marinho
1.6K views21 slides
Clases 4 modelos-de_negocios_b2_b by
Clases 4   modelos-de_negocios_b2_bClases 4   modelos-de_negocios_b2_b
Clases 4 modelos-de_negocios_b2_bMarlon Altamirano
7.5K views28 slides
7 Use Cases in 7 Minutes Each : The Power of Workflows and Automation (SVC101... by
7 Use Cases in 7 Minutes Each : The Power of Workflows and Automation (SVC101...7 Use Cases in 7 Minutes Each : The Power of Workflows and Automation (SVC101...
7 Use Cases in 7 Minutes Each : The Power of Workflows and Automation (SVC101...Amazon Web Services
8.8K views60 slides
Modelos clásicos de localización óptima by
Modelos clásicos de localización óptimaModelos clásicos de localización óptima
Modelos clásicos de localización óptimamarcosmedinatapia
8K views27 slides
User Engagement Teardown: Which Coffee Is The Cream Of The Crop? by
User Engagement Teardown: Which Coffee Is The Cream Of The Crop?User Engagement Teardown: Which Coffee Is The Cream Of The Crop?
User Engagement Teardown: Which Coffee Is The Cream Of The Crop?Iterable
5.7K views84 slides

More Related Content

More from Dr. Augustine Fou - Independent Ad Fraud Researcher

Still nothing but ad fraud 2021 dr augustine fou by
Still nothing but ad fraud 2021 dr augustine fouStill nothing but ad fraud 2021 dr augustine fou
Still nothing but ad fraud 2021 dr augustine fouDr. Augustine Fou - Independent Ad Fraud Researcher
1.8K views25 slides

More from Dr. Augustine Fou - Independent Ad Fraud Researcher(20)

Recently uploaded

Nevigating Sucess.pdf by
Nevigating Sucess.pdfNevigating Sucess.pdf
Nevigating Sucess.pdfTEWMAGAZINE
24 views4 slides
voice logger software aegis.pdf by
voice logger software aegis.pdfvoice logger software aegis.pdf
voice logger software aegis.pdfNirmal Sharma
44 views1 slide
On the Concept of Discovery Power of Enterprise Modeling Languages and its Re... by
On the Concept of Discovery Power of Enterprise Modeling Languages and its Re...On the Concept of Discovery Power of Enterprise Modeling Languages and its Re...
On the Concept of Discovery Power of Enterprise Modeling Languages and its Re...Ilia Bider
15 views17 slides
Learning from Failure_ Lessons from Failed Startups.pptx by
Learning from Failure_ Lessons from Failed Startups.pptxLearning from Failure_ Lessons from Failed Startups.pptx
Learning from Failure_ Lessons from Failed Startups.pptxCodeventures
11 views7 slides
Tanishq by
Tanishq Tanishq
Tanishq supiriyakithuva
14 views7 slides
ZARA.pptx by
ZARA.pptxZARA.pptx
ZARA.pptxmerlinjenma529
39 views13 slides

Recently uploaded(20)

Nevigating Sucess.pdf by TEWMAGAZINE
Nevigating Sucess.pdfNevigating Sucess.pdf
Nevigating Sucess.pdf
TEWMAGAZINE24 views
voice logger software aegis.pdf by Nirmal Sharma
voice logger software aegis.pdfvoice logger software aegis.pdf
voice logger software aegis.pdf
Nirmal Sharma44 views
On the Concept of Discovery Power of Enterprise Modeling Languages and its Re... by Ilia Bider
On the Concept of Discovery Power of Enterprise Modeling Languages and its Re...On the Concept of Discovery Power of Enterprise Modeling Languages and its Re...
On the Concept of Discovery Power of Enterprise Modeling Languages and its Re...
Ilia Bider15 views
Learning from Failure_ Lessons from Failed Startups.pptx by Codeventures
Learning from Failure_ Lessons from Failed Startups.pptxLearning from Failure_ Lessons from Failed Startups.pptx
Learning from Failure_ Lessons from Failed Startups.pptx
Codeventures11 views
Coomes Consulting Business Profile by Chris Coomes
Coomes Consulting Business ProfileCoomes Consulting Business Profile
Coomes Consulting Business Profile
Chris Coomes52 views
How UiPath’s European Founder Kept Control and Built an Expert Board of Direc... by Christian Dahlen
How UiPath’s European Founder Kept Control and Built an Expert Board of Direc...How UiPath’s European Founder Kept Control and Built an Expert Board of Direc...
How UiPath’s European Founder Kept Control and Built an Expert Board of Direc...
Christian Dahlen51 views
SUGAR cosmetics ppt by shafrinn5
SUGAR cosmetics pptSUGAR cosmetics ppt
SUGAR cosmetics ppt
shafrinn597 views
Navigating EUDR Compliance within the Coffee Industry by Peter Horsten
Navigating EUDR Compliance within the Coffee IndustryNavigating EUDR Compliance within the Coffee Industry
Navigating EUDR Compliance within the Coffee Industry
Peter Horsten44 views
CORPORATE COMMUNICATION.pdf by AKarthikeyan8
CORPORATE COMMUNICATION.pdfCORPORATE COMMUNICATION.pdf
CORPORATE COMMUNICATION.pdf
AKarthikeyan814 views
Integrating Talent Management Practices by Seta Wicaksana
Integrating Talent Management PracticesIntegrating Talent Management Practices
Integrating Talent Management Practices
Seta Wicaksana134 views
Top 10 IT Tasks Small Businesses Can Entrust to Offshore Professionals by altafhsayyednimetler
Top 10 IT Tasks Small Businesses Can Entrust to Offshore ProfessionalsTop 10 IT Tasks Small Businesses Can Entrust to Offshore Professionals
Top 10 IT Tasks Small Businesses Can Entrust to Offshore Professionals
The Talent Management Navigator Performance Management by Seta Wicaksana
The Talent Management Navigator Performance ManagementThe Talent Management Navigator Performance Management
The Talent Management Navigator Performance Management
Seta Wicaksana29 views

Cross Channel Media Costs Comparison CPM Basis by Augustine Fou

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