Report: Cable buys more efficient than online

When it comes to reaching people age 18-49, cable TV is a more efficient buy than streaming video ads.

That’s according to the cost forecast firm SQAD, which found the average CPM for in-stream video ads was $23.03 in 2013, or 38 percent higher than the average 18-49 CPM for primetime cable ($15.63).

Primetime network TV remained the priciest medium measured by SQAD, with 18-49 CPMs averaging $44.11 last year. On the other end of the spectrum, online display ads were the cheapest medium measured with CPMs at $10.88, down from $10.98 in 2012.

SQAD says streaming ads have higher CPMs than cable because online premium video inventory is still relatively limited, leading to higher rates.

Interestingly, TV network web sites are driving up the CPMs of in-stream ads. The SQAD data shows the combined in-stream video CPMs for the NBC, CBS and ABC web sites was around $30.00, or nearly $7 more than the overall in-stream average.

Tags: advertising, cable, online video, research, sqad, tv