I'm planning for a startup that will give wifi internet access in public areas in exchange of watching ads. What should be the ideal charging amount for showing 30 sec non skippable ads?
You can charge $2.33 per 30 secs So if you get 200 visitors per day, you can expect to make $464 per banner ad. Tho, There are many conditions that can change this calculation.
so look at average youtube Revenue per 1000 views, and multiply by 2 ... Maybe a little more.
My guess $2-$5 / 1000 views
Now also consider that if it's the same "local advertiser" (located nearby your WIFI access) that could bring them lots of foot traffic and revenue ... so maybe you can charge more than $2-$5 :)
Easy answer is that video eCPMs could range from anywhere from $10 to $50 or even higher.
Short answer is you can charge as much as you can get away with
Long answer follows
# of visitors is ideally not a metric to benchmark what you should charge. The two primary factors being,
1) Audience Attributes - Assuming you are able to tap into specific public areas, you could segment your pricing based on that. Public areas near big retail stores, dense banking areas etc. suggest that your audience could be more affluent so you can seek high CPMs from brands to show ads in those areas
2) Advertising Objective: You mention a 30 sec non-skippable video ad so not a lot of scope here beyond awareness/consideration but could you potentially bake in a direct response format (say a coupon code for anytime within 1 mile of a Target store). Now if you can prove direct attribution of sales from ads on your platform, it opens up a far more lucrative pricing option where you could charge not only for showing ads but potentially a cut in sales
I agree with Ankit. I'm not sure how people are getting to their cost per user recommendations, but no reasonable marketer is going to pay you for that. Everything needs to be charged per thousand views as that's the industry standard (CPM or "Cost per Mille" which means "Cost per Thousand"). Video CPMs range anywhere from $5-$40 and I'd say the typically sweet spot that brands/agencies are used to paying would be $10-$25. At 10k views a day, you can reasonably make $100-$250 a day if you fill all your available inventory.