YouTube’s 80 Cent CPM

ValleyWag does some math:

After Yuri Baranovski’s Web TV series Break a Leg reached two million views on YouTube, Google cut him a $1,600 check. In advertising math, that translates to an $0.80 CPM, or cost per thousand views. Taking what NewTeeVee knows about YouTube’s partner program, disgraced stock analyst Henry Blodget suggests that YouTube charges advertisers a CPM between $1 and $3.20 and gets to keep between $0.25 and $2.40. The equation’s solution: On 3.4 billion YouTube views in January, Google grossed between $850,000 and $2.72 million. Taking the higher estimate, YouTube will have paid back Google for its $1.65 billion acquisition price in another 607 months.






2 responses to “YouTube’s 80 Cent CPM”

  1. Simon Owens Avatar

    It seems to me that the problem isn’t that advertising for online video isn’t there, it’s just that Google hasn’t been very proactive about it. Seriously, their best idea for advertising was to have little tab ads at the bottom of the video? Why don’t they run 15 second video ads for videos that are 4+ minutes? I sit through little mini ads all the time at other sites to see clips.

  2. Jack Avatar

    Wow! Google is really a tough gun to beat. Giving Yahoo! a run for their ads money. Hmmmn, what else is new anyway, huh?

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