The Great Unwatched
By many estimates, more than half of online video ads are not seen, either because they are buried low on web pages or run in tiny, easily ignored video players on those pages, or run simultaneously with other ads.Given the nearly $3 billion a year now spent on online video ads, and the 57 percent of them that are deemed unviewable, it’s safe to assume that American brands are now spending more than $1 billion a year on marketing that few if any people see.
When
there is unoccupied ad space, a computer starts a sort of Dutch auction
with a number of ad networks. The Daily Caller’s system canvasses these
networks, asking “Do you have any ads for this space at the following
C.P.M.?” If the answer is no, the system goes to another network, then
another, then another, until a network coughs up an ad and some money.
If
there are no takers, The Daily Caller’s system lowers the price and the
canvassing starts again. Generally, the further down on a web page, and
the smaller the ad, the lower the C.P.M. For space low on the page and
in small players, the C.P.M. ranges from 50 cents to $1.
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