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Ad prices drop

Posted by Michael Bloch in web marketing (Friday January 16, 2009 )

It’s good news for advertisers, but not so good for publishers – online display advertising prices have dropped substantially over the past year according to a recent survey. But it’s not all gloom and doom

According to the AdPrice Index published by Pubmatice, a significant decline in Q4 2008 online display ad pricing compared to Q4 2007 has been experienced by all sizes of websites and all vertical categories; with small, medium, and large sites dropping 52%, 23%, and 54%, respectively.

A small web site is defined in the report as a attracting less than 1 million page views per month, a medium web site between 1 million and 100 million page views per month and a large web site over 100 million page views per month.

The biggest drop by a vertical was Business & Finance, which dropped from an average price of $2.13 CPM in Q4 2007 to $0.83 in Q4 2008 – a 61% decrease.

However, there appears to be some flattening out in the recent quarter, so perhaps the trend may reverse soon. No vertical categories dropped by a significant amount from Q3 2008 to Q4 2008, with some verticals improving on the previous quarter; including Technology, Sports, Entertainment, Gaming, and Music.

So advertisers, scoop up a bargain while you can :).

The PubMatic AdPrice Index is a quarterly survey comprised of over 5,000 websites, approximately 85% of which are US based. The pricing data in the survey results reflects net publisher monetization via ad networks and excludes ad networks’ share of ad spends as well as inventory sold directly by publishers to ad agencies or advertisers.

The full Q4 AdPrice Index survey report can be downloaded here (PDF).


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