Re: ONLINE-ADS>> Slates study from summer

Rick Boyce (rick_at_wired.com)
Tue, 20 Jan 1998 18:42:47 -0700

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I've just completed some work on the comparitive CPM issue. The
article will appear in the 2/2 Ad Age supplement from the IAB. I
wrote the piece because I had grown frustrated by all the superficial
CPM comparisons coming from the online analyst community. Here's a
quick preview:

What is important to remember when looking at comparative CPMs is that
TV is a mass reach medium. Even selective dayparts and programs reach
giant cross-sections of the population. While a thirty second network
primetime spot may deliver a $12 CPM against all US households, if the
target audience is refined by adding income and education screens, the
CPM jumps dramatically. The truth is that for reaching high income,
well educated audiences, television CPMs are quite high and Web
advertising, in many cases, can actually deliver a lower CPM against
well educated, high income demographics.

Using network primetime costs and ratings estimates from the fourth
quarter of 1997, Exhibit II examines the reach and CPM of an average
primetime when age, income and education screens are added.

Target Audience CPM

US TV Households 8,526,000 $12.52

A18-49 6,361,200 $16.78

A18-49 & $40k+ HHI 3,796,200 $28.12

A18-49 & $50k+ HHI
& HOH 1+ yr. College 2,171,700 $49.15

Key: HHI = household income, HOH = head of household

Source: Netcosts Q4 1997 primetime scatter estimates, Nielsen 11/97
audience estimates

Rick Boyce
rick_at_wired.com

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