Regardless of CPMs, VideoEgg Keeps Innovating
Posted by Nick O'Neill on July 10th, 2008 9:00 AM
Last month I hung VideoEgg out to dry after hearing a number of developers complain about VideoEgg’s inability to fill inventory and their rapidly decreasing CPMs. To put all the blame on VideoEgg isn’t completely fair though. There is an industry-wide problems which is that CPMs seem to continue going down, not the other way around. This is the exact reason I announced Social Ad Summit. Perhaps, if we get a bunch of brands, media buyers, social network execs and ad networks in a room, something positive will come out of it.
Either way, back to VideoEgg. Yesterday, VideoEgg announced a few new advertisements which as Catherine P. Taylor puts it, helps VideoEgg have another model beyond “engagement.” There are five new types of advertising solutions:
- One solution enables advertisers to include live updates to advertisements via RSS feeds.
- The second is “local mapping, which advertisers can use to provide store locations to users based on their zipcode.”
- Third is a multi-clip capability. This is pretty straight-forward. It means that each advertisement can have multiple videos in each ad placement.
- There is a mini-store “which allows marketers to display DVDs or other items for sale below the video player, and
- Finally, a share and syndicate feature which enables users interacting with an advertisement to immediately share the video within that ad on Facebook and other social networks or email it to a friend.
Last time I came out with guns blazing against VideoEgg. It may not have been totally fair considering that at least they are consistently developing new advertising solutions, some of which are completely innovative. The problem of low CPMs or not being able to fill inventory with quality advertisements is not limited to VideoEgg. Everybody in the industry is facing this problem.
While there are companies that are attacking the problem from all angles, nobody has yet to come up with the perfect solution. It’s time to put our heads together and come up with one!
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Whether videoegg is around in a few years or not, I dunno. But it is nice to see companies trying new ideas, Good luck to them!
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...CPMs seem to continue going down
The problem of low CPMs or not being able to fill inventory...
Different outlets have reported CPMs from 5 cents to about a dollar, but what basis do we really have to call these "low". Are they low compared to blogs? Compared to print media? Compared to TV?
Obviously the physical number is lower, but these are all bad comparisons. The "M"s on a social app are very different from those in print and those on TV and those on blogs. Saying these CPMs are low requires that you have some basis for comparison, but I'm not seeing that basis.
I mean, maybe the "CPMs" aren't high enough to operate my own business, I hear that pain. But I'm not really complaining about my CPMs here, I'm complaining about lack of total advertising dollars. I can change my own CPMs just by changing the number of ads I show to each user.
I don't care about my CPMs, I care about my Revenue. And maybe that's the problem, I think that we need to start talking in terms of revenue / user or some better metric.
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