Online ad prices consistently declined in 2008, falling 21% since Q2 and 27% since Q1, with small sites and some verticals most affected by the faltering economy, according to the PubMatic AdPrice Index for Q3 2008.
The AdIndex, a quarterly measure of online ad network pricing, shows that publishers of all sizes are feeling the pinch of a nationwide economic slowdown. Small sites continue to command better pricing for eCPMs – now at $0.61 on average for Q3 – but these price levels have declined quarter-to-quarter. eCPMs for large sites held steady in Q3, but at a lower pricing base of $0.18.
“Even though declining budgets are a concern [for marketers], the measurability of the internet shouldn’t be discounted,” said Rajeev Goel, president and co-founder of PubMatic. “This overall downward trend in the economy may be a call to marketers to segment more of their budgets to methods and tactics that allow them to better measure ROI.”
Throughout the year, display advertising pricing has also trended downward across verticals. Specific vertical-market findings:
About the survey: The PubMatic AdPrice Index is a monthly survey of more than than 5,000 websites, approximately 85% based in the US. It is prepared by independent statisticians and industry experts Albert Madansky, Ph.D. and Michele Madansky, Ph.D. The data is the first in a series of quarterly releases of the PubMatic AdPrice Index. Pricing data 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.
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