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Online video advertising rates slashed Video-on-demand companies cut rates to boost take-up, it is claimed.
Companies that use online video productions in their advertising strategy will be encouraged by news that internet ad rates are falling.
According to New Media Age, UK video-on-demand platforms, such as Channel 4's 4oD, are slashing the amounts they charge for advertising space to boost take-up.
The news provider claims that in the last few months ITV and Channel 4 have reduced their rates from CPMs (cost per thousand impressions) of £40 to around £20.
An industry source told publication the prices had changed "as the premium broadcasters are facing competition from YouTube and video networks".
However, Channel 4 denied there had been any significant drop in rates. Errol Baran, head of new media advertising at the broadcaster, said: "Rates will always move. We have to be as competitive as we can."
Using online video productions to advertise on video on demand sites could be a worthwhile venture according to a recent study by Motorola.
It found that over half (52 per cent) of UK consumers watch video streamed from the internet.
Posted by Angela Metcalfe
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