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BizReport : Advertising : May 14, 2008
Online advertising CPMs falling
It seems that online advertising isn’t as immune to the effects of the economic slowdown as first thought, according to recent analysis from PubMatic.
Clicks per thousand monetization fell 23% between March and April this year, found PubMatic after analyzing data from billions of ad impressions. Large websites (100million+ monthly page views) suffered the largest falls – on average 52% down from 38 cents to 18 cents.
Medium-sized websites saw less of a change in the same period with a 1 cent fall. Meanwhile, small websites actually showed an increase in monetization, rising from $1.18 in March to $1.29 in April.
This is PubMatic’s second AdPrice Index report. It is a “broad-based measure of ad network pricing information… based on anonymous data from over 3,000 publishers who work with PubMatic for ad network and layout optimization services.”
Not everyone in the industry thinks the drop is due to the slowing economy. “I doubt it. More likely, it's a reflection of the glut of inventory available, and the failure of an ad-selling business model,” writes Owen Thomas at Valleywag.
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