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Online Video Ads Are Half the Price of Primetime Network TV

By JACK MARSHALL

March 24, 2014

Buying ad time on Web video is more expensive than on cable channels. But the major broadcast networks remain by far the costliest real estate for video advertisers, according to new data from advertising cost analysis firm SQAD.

A study conducted by the company found the average cost of reaching a thousand online video viewers was $23.03 in 2013, 47 percent cheaper than the $44.11 it cost to reach a thousand 18 to 49-year-olds during primetime network TV.

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Ad space on cable TV is considerably cheaper than online video, however, with an average price of $15.63 to reach a thousand viewers, the company’s research suggests.

SQAD CEO Neil Klar said online video ad prices remain relatively high because inventory is still scarce. Broadcast TV networks continue to command premium prices, he added, thanks to high-quality programming and extensive reach.