Frank Barnako writes about the new prices for advertising on Rocketboom:
Baron said he’s just done a deal worth $80,000 for a week of commercials in his videoblog. Claiming a daily audience of some 300,000 people, Baron could be getting more than a $55 CPM for his ads. You could get a discount, though. He’ll sell you a week of spots for $60,000 – if he likes the commercial content. „
Baron is in the comfortable position to have a videocast with a very high frequency of viewers, yet being under no pressure whatsoever due to lack of relevant competition…
„I’m only going to work with advertisers I want to work with,“ Baron said, „and I’m only going to run ads I like.“
I don’t think he can sustain that position. He has a first mover advantage, but soon enough that will be effectively challenged by all those ambitious video-geeks reading about the money Baron is making. And there will always be some that are successful.
But then again, I do think he can make money by selling exclusive content for a subscription. That is the story of the DVD business. Package your show with exclusive background material and people will pay for it. At least until the first people will start offering this exclusive material for free, all paid for by a sponsor, for example.
Hey, he’s making $4.000 a month on T-Shirts that are advertised badly. There must be something about his target audience, paying for these things…