Ad Network Pricing Keeps Falling as Social Networks’, Gaming Sites’ Improve

June 17, 2008

This article is included in these additional categories:

Agency Business | Media & Entertainment

Overall monetization in the online ad industry dropped 0.7% in May from April, following a 23% drop in April from March, according to the PubMatic Ad Price Index, a bimonthly report of online ad network pricing for online publishers, writes MarketingVOX.

But social networking and gaming site pricing began to improve: eCPMs (effective cost per thousand)?increased 66% and 51%, respectively, according to PubMatic, which said monetization for sports sites remained level in May; and entertainment, news and tech sites dropped 11%, 13% and 22%, respectively:

pubmatic-ad-price-index-verticals-by-variance-march-may-2008.jpg

Among small, medium and large sites, the large ones (100 million pageviews per month) improved most – 16% in April (from 18 to 21 cents) – as midsize?sites (1 million to 100 million pageviews/month) remained level, changing less than 1%, and small sites (fewer than 1 million pageviews/month), fell 12% from March to April, according to the data:

pubmatic-ad-price-index-march-may-2008.jpg

Other findings:

  • Site monetization typically decreased less than 1% – from 38 cents in April to 37 cents in May. (This data reflects net publisher monetization from ad networks, excluding ad share of ad spends, and inventory sold directly by publishers to agencies or advertisers.)
  • Of the vertical sites, social networking increased most: Monetization climbed 66%, from 19 cents in April to 32 cents in May, just below the vertical’s peak of 34 cents in March.
  • Gaming monetization increased 51%, from 66 cents in April to $1.00 in May.
  • Entertainment monetization dropped 11% from 33 cents in April to 29 cents in May; while news sites dropped 13%, from $1.30 in April to $1.10 in May.
  • Tech sites fell further still: from 83 cents in April to 65 cents in May.
  • Niche sites, averaging $1.13 eCPMs, fared better than medium and large ones, averaging 33 and 21 cents, respectively.

Monetization of smaller sites fell slightly from $1.29 in April; larger sites increased 16%, from 18 cents in April, indicating that some advertisers may be shifting budgets to take advantage of the lower prices on larger sites, PubMatic said.

“While social networking and gaming sites did show some increase in monetization, the two verticals remain volatile and continue to monetize at lower rates than other, smaller verticals,” said cofounder Rajeev Goel PubMatic at the New York OMMA publishers conference.

About the data: The PubMatic AdPrice Index is based on data from over 3,500 publishers and billions of ad impressions. The current?data is third in a series of monthly releases of the PubMatic AdPrice Index.

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