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BizReport : Advertising archives : July 13, 2013

Ad industry lacks online CPM insight

Online advertising is no longer a new activity, it has been around for a decade or more, so one might assume that ad buyers have a good insight into CPMs. Not so, according to SQAD, whose recent survey found those who buy online ads are still unclear as to what they should be paying.

by Helen Leggatt

sqad logo.pngResearch firm SQAD polled marketing and advertising professionals about their CPM expertise, and found it wanting. According to their survey, three-quarters of respondents were unable to identify which website category attracts the highest average CPMs. The correct answer is the finance/insurance and investment category ($22), yet most (30%) respondents incorrectly assumed the entertainment category ($9.50) had the highest CPMs.

Neil Klar, CEO of SQAD, said the lack of CPM insight is industry-wide. "The industry needs to make display ad costs more transparent so advertisers can make the right marketing decisions," he said.

The survey found that ad buyers were far more au fait with television ad costs. A majority (58%) correctly identified the primetime television program with the highest 30-second ad price - American Idol.

"We are finding that many ad buyers are still in the dark about how much they should be paying for display ads, despite the proliferation of online advertising over the past decade. The opposite is true with broadcast advertising," said Klar.

Tags: ad costs, advertising budget, advertising terminology, CPM, online advertising, website

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