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.

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About Andy Wibbels

Andy is an award-winning blogger and author of the book Blogwild! A Guide for Small Business Blogging. His work has been featured in The Wall Street Journal, USA Today, Entrepreneur, Wired, Business Week, Forbes, and other national and international media. He was worked at several San Francisco startups including Get Satisfaction, SAY Media, InMobi, Keas, and Mindjet. Currently, Andy is Director of Marketing at Lucidworks. Tw · Fb · G+ · Li

2 thoughts on “YouTube’s 80 Cent CPM

  1. Simon Owens

    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.

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