VOD ad market rate cutting

The UK online industry is trying to boost the embryonic VOD market by reducing ad rates and standardising media buying.

NMA reports that ITV and Channel 4 have cut their online video rates from CPMs of £40 (E45) to around £20. Media buyers said it was a conseqience of increasing competition – SeeSaw, YouTube, Hulu, etc and the increase in long tail inventory.

The moves come as the Interactive Advertising Bureau offers its US Video Ad Standards Template (VAST) to UK publishers, including Channel 4 and ITV, in a bid to secure trust and spend in video-on-demand. VAST allows advertisers to plan and manage pre-roll, in-stream and display ads across a range of publishers' video sites by embedding code which enables campaigns to be managed from one place.

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