Cross Channel Media Costs Comparison CPM Basis by Augustine Fou
1. Broadcast TV $20 cpm
Cable TV $18 CPM
Radio $5 cpm
Magazines $20
Newspaper $35
Out of Home $4
Internet $11
Direct mail $40 CPM
Comparative Media Costs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
Source: OAAA, 2011
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2. U.S. Ad Spending by Media
Source: eMarketer, August 2013
eMarketer shows
TV still growing
strongly
Digital will
continue to grow
at the expense of
print and other
offline forms
3. Comparative Media Costs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
Source: Morgan Stanley Research 2010
Broadcast TV $28
Radio $10
Magazines $16
Newspaper $16
Out of Home $5
Internet $3
Traditional vs digital media costs
Traditional media CPM
Digital media CPMs
Comparing costs of various media
Relative costs of media
how do media costs compare
media costs compared
Understanding the Economics
of Digital Compared to Traditional
Advertising and Media Services
Digital media compared to traditional advertising
digital versus traditional marketing
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4. Comparative Media Costs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
$450
$250
$140
$30 $15 $7 $2
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Direct Mail Mail Order
Catalog
Drive Time
Radio
Prime Time
TV
Online
Video Ads
Online
Display
Online
Search
pay for
mailing
costs
Offline: w/o Unit Costs ONLINE: WINNER
pay for
media
costs
no mailing or
media costs
Offline: w/ Unit Costs
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5. Comparing Costs of Media
Normalizing with cost to reach 1,000 users or impressions
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Source: AP March 10, 2013
Elle Magazine
Circulation 1.1M
eCPM: $141
Superbowl 2013
Audience 108M
eCPM: $37
Websites/Digital
Target Audiences
eCPM: $1’s of dollars
7. Online Video CPMs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
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8. Dr. Augustine Fou – Agency Czar
“I advise clients on using different
formats of digital ads and defining clear
metrics to show business impact and
ROI; and to integrate and unify
marketing activities across channels.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou
9. Related Slideshares
Display Search Social CTR Benchmarks
By: Augustine Fou, March 11, 2013
Left Side is Branding, Right Side is Performance
By: Augustine Fou, March 12, 2014
The Facebook Ad Scam
By: Augustine Fou, April 12, 2012
Facebook Advertising Benchmarks
By: Augustine Fou, May 29, 2009
Cross Channel Media Cost Comparison
By: Augustine Fou, Feb 4, 2014
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