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Pro Web Video Pays, But Virals Flood Market

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Professionally-produced Web programming yields high CPMs, according to a new report from the Diffusion Group. The CPMs for long-form online content are $40 today and will reach nearly $46 in 2013. Meanwhile, CPMs for short clips are clocking in at about $30 and will increase to about $34 in five years. User-generated videos generate CPMs of about $15 today and will reach $17 in 2013. The report also found that user-generated videos account for about half of the online videos consumers watch but only 4% of online video ad revenue. Meanwhile, professionally-produced videos command the other 96% of Web video dollars. Advertising in Web video should reach $590 million this year and hit $10 billion in 2013.
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