cost comparison across channels and media types; comparing media costs across channels; traditional vs digital media costs, normalized media costs offline vs online.

1. Comparing Costs of Media
Normalizing with cost to reach 1,000 users or impressions
Elle Magazine Superbowl 2013 Websites/Digital
Circulation 1.1M Audience 108M Target Audiences
eCPM: $141 eCPM: $37 eCPM: $1’s of dollars
Source: AP March 10, 2013
-1- Augustine Fou

2. Comparative Media Costs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
$500
$450 pay for
$450
$400 mailing
$350 costs pay for
$300
$250
$250 media
$200
$140costs
$150 no mailing or
$100
$50 $30 $15
media costs
$7 $2
$0
Direct Mail Mail Order Drive Time Prime Time Online Online Online
Catalog Radio TV Video Ads Display Search
Offline: w/ Unit Costs Offline: w/o Unit Costs ONLINE: WINNER
-2- Augustine Fou

3. Comparative Media Costs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
Broadcast TV $30
Traditional vs digital media costs
Radio $10
Traditional media CPM
Magazines $16
Digital media CPMs
Newspaper $16
Comparing costs of various media
Out of Home $5
Relative costs of media
Internet $3
how do media costs compare
media costs compared
Understanding the Economics
of Digital Compared to Traditional
Advertising and Media Services
Digital media compared to traditional advertising
digital versus traditional marketing
Source: Morgan Stanley Research 2010
-3- Augustine Fou

4. Advertising CPMs (Offline)
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
-4- Augustine Fou

5. Online Video CPMs
Cost per Thousand (CPM): Cost to reach 1,000 users or impressions
-5- Augustine Fou