Ad prices Slow Down

Based on a particular index, which tracks the ad prices for online advertisers, the online advertising rates dropped around 23 percent over the last months, based on the effective cost-per-thousand impressions (ecpm). This would be the result of the general American economic slowdown, seemingly with repercussions on the online advertising industry.

The reason why researchers from the Pubmatic Adprice Index believe that the economic slowdown is the true cause of the price drop, is because the shift in the data where not from one particular sector.”It cuts across verticals, it cuts across different [regions] within the U.S., and it cuts across different types of publishers. That’s what led us to the conclusion that it is probably an artifact of the slowdown in the U.S. economy.”, are the words from Pubmatic’s general manager Rajeev Goel.

The price drops also seem to hit the larger websites and social networking sites harder than others. Large websites, with more than 100 million page views a month, saw a price drop of a stunning 52% from an average of 38 cents in March to a mere 18 cents in April. The biggest losers are the social networking sites, with a 47% loss, they come from an average of 37 cents CPMS in March to only 19 cents in April.

Smaller websites on the other hand, with less than 1 million page views a month, experienced a slight increase in monetization, with a raise from average 1.17 $ to 1.29$ in April.

Publishers now increasingly integrate foreign ad networks in their existing channels to minimize the US economy impact and by doing so they make the most of their international segments. “That’s why the 30 percent of a publisher’s traffic that is international can count for more than 30 percent of their revenue,” Rajeev Goel added.

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