Online Video Ads: High Price, High Value?

How long will online video ads, on a CPM basis, cost more than television ads?
“It’s driven by a dearth of quality produced video online,” said Nick Johnson, NBC’s VP, national sales, Internet and broadband.

“It’s a marketplace supply and demand story,” said Johnson, speaking at the IAB’s Digital Video conference today in NYC. He said the costs will likely remain higher, for now, as long as consumers respond better to online video ads than television ads. “There’s a lot of opportunities to be interactive, to be a very immersive experience,” he said.

From Endemol USA, the producers of reality television series such as “Big Brother,” look for brand-sponsored content online, said Jon Vlassopulos, SVP, digital media and branded entertainment. (Last month, NBC Universal said it is working with Omnicom Media Group Digital to pair brands with content.)

Two years ago, Endemol Mobile created an interactive mobile video for Nokia, called “Get Close To…Sugababes.” It featured clips of the pop group. And the video was shot on — you guessed it — Nokia phones.