Video Publishers Sell Out and CPMs Soar as Super Bowl Spending Spills Over into Online

Troels SmitWith the cost of media for this Sunday’s Super Bowl soaring to $3 million per commercial, you’d be forgiven for thinking that this is the time of year when online-only publishers cast envious glances in the direction of the US TV industry. However, according Troels Smit, VP of Demand Sales at LiveRail, online video publishers are seeing a bump in sales and a rise in CPMs as advertisers seek out incremental reach online.

“As the largest source of video inventory, we’re seeing this demand come in from all the leading DSPs that are talking to agencies and advertisers,” Smit explains. “Brands are spending big on Super Bowl commercials, and they’re looking to online channels to make sure those ads are see by as wide an audience as possible. Also, brands are buying up pre-roll spots in the day before the game and the two days after. Advertisers utilising online video as part of their campaign are after Sports, Music and Entertainment content.”

“As these sites are all starting to be sold out, we’re seeing two trends: (1) CPMs go up; and (2) advertisers start to be interested in finding their audience on other types of inventory. As a result of this buying frenzy, online video ad spending is up three times the normal amount for the 12 hours after the Super Bowl. Many sites can’t meet the demand. When those spots are sold, advertisers will look to other channels, reaching viewers on mobile devices and connected TVs,” he added.

While some might think that big brands are simply buying into the Super Bowl hype, in 2013 the $3 million provided advertisers with instant access into 53 million homes, and during a commercial break when many people really are making a conscious effort to watch the ads. Not only that, but these are highly coveted demographics — over one quarter of the homes reached in 2013 made more than $100,000 per year, whereas decade earlier, for Super Bowl XXXVII in 2003, roughly 14 percent of homes taking in more than $100,000 per year tuned in to the Super Bowl.

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