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How much should an advertiser pay for 1 million unique, male, users age 18-24 in the 'gaming' world? (:30 second ad) Thank you. |
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You want to price on a cost per thousand views (CPM) basis. You can find a lot of data online for standard CPMs for online video ads. Here's an example: http://www.reelseo.com/video-advertising-cpms-bargain/. Let's say you charge a $20 CPM (lower-end of industry average). That will be $20,000 for a 30 second spot that you can reasonably guarantee 1m people will view. In response to the first answer, the marginal cost of this ad for you is almost zero, so it will be profitable for your business at any price. |
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video streaming has significant bandwidth costs though, which would eat into the profit contribution of the served ad, I would factor it into my assumptions of concurrent users |
