Ad Networks Still Hurting; Rates Down And Staying There

Michael Learmonth | July 15, 2008 10:00 AM

pennies-01.jpgSome online ad rates continued their decline last month, at least according to one survey: Online publishers earned a $0.36 CPM, or cost per 1,000 ad impressions, for inventory sold through ad networks in June, a one-cent drop from May, according to Pubmatic. The ad network optimization firm released its June survey of ad network pricing and found, not surprisingly, things haven't improved since rates took a 23% nose-dive in April.

Driving the June decline were small Web sites -- those under 1 million page views a month -- which dropped to $0.81 in June from a $1.13 average CPM in May. Medium-sized Web sites (1 million to 100 million page views) saw a modest increase, to $0.46 in June from $0.33 in May. Large Web sites also rose, but just two cents, to $0.23 in June from $0.21 in May.

Pubmatic draws its data from 4,000 Web sites that take ad network advertising, 85% of which are based in the U.S.

See Also:
Old Media Ads Down. What About Ad Networks?
The Ad Network Business: Not Doing So Bad After All?
Economic Slowdown Slamming Ad Networks, Desperate Publisher That Use Them

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8 Comments

The Doctor said:
Really? How much inventory did Pubmatic see? What type of inventory was it? Unsold? Direct sales? What type of sites? What sort of traffic do the sites have?

All of these factors have an impact on the rates paid for inventory. I suspect that the inventory that Pubmatic sees is not the most optimal. They are reporting on a small sliver of the market - at most.

Granted, I'm sure that there is some impact on the online advertising sales market, but relying on Pubmatic for a sense of the market? Come on.
We take it as a data point, nothing more. 4,000 sites is a significant sample. This is inventory sold through ad networks, not direct-to-publisher sales.
Michael said:
When will people realize that pubmatic and rubicon do not represent an accurate assessment of the health of ad networks. They work with small long tail sites that most brand advertisers do not want to be on anyways.
Svetlana Gladkova (URL) said:
To the contrary, I think that PubMatic does offer some representative stats. Let's keep it in mind that the service is intended to maximize revenue for publishers so they only choose the best-performing ads from all the ad networks available to the site. So if we took examples of websites working only with one network, the earnings should have been much worse.
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sydnie (URL) said:
640-802 Ad Networks Still Hurting; Rates Down And Staying There Good job. That's super. That's not what I'm saying.
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