Tremor Video Tries to Make Video Ad Buying Easier with Performance-Based Pricing

/ Oct 30, 2013


If online video companies want access to TV budgets, they have to make the ad-buying process easier for TV buyers. Here’s another move by a prominent video ad tech company to eliminate the hurdles between TV and online video advertising:

Tremor Video is rolling out a slew of new performance-based pricing models, which promise to only charge advertisers when a consumer action matches a pre-determined objective — from raising brand awareness at the top of the marketing funnel all the way down to metrics like engagement, perception, and intent.

Tremor’s pricing models are broken down to two offerings, the Awareness Guarantee and the Brand Impact Guarantee Suite. Within the Awareness Guarantee, advertisers only pay when their ad is 100% viewable and 100% completed. Tremor will use its owned video ad tech, VideoHub, to verify these metrics. Within the Brand Impact Guarantee Suite, advertisers can buy based on cost-per-engagement (when a viewer interacts with the ad), cost-per-brand shift (when a consumer’s “intent” or “favorability” for the brand goes up), and cost-per-conquest (when a consumer likes your brand more than competitors).

“This new suite of performance-based pricing models invites advertisers to now pay for what they really want, effectively eliminating the waste inherent in previous options,” says Lauren Wiener, president of global sales and marketing at Tremor Video. By “previous options,” Wiener is primarily referring to the CPM model for buying and measuring ads. In this model, advertisers are generally paying for the possibility of their ad being seen, with the understanding that some of those impressions will go to waste (not seen, due to various factors).

The wasted impression can often be a black mark on the online video ad industry as it aims to access more ad dollars. Then again, the CPM model does offer a scale that other pricing models might not be able to. So right now it’s a little bit of a pick-your-poison situation.

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