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Online advertising takes a hit

by Hugh Bicheno on 14 May 2008, 18:03

Quick Link: HEXUS.net/qam7q

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Small sites prosper at the expense of large

PubMatic, an automated ad inventory service for Web publishers, released its second monthly PubMatic AdPrice Index on Tuesday. The index shows a drop of 23 percent in overall monetisation for the online advertising industry.

The AdPrice Index revealed that large websites fared the worst while smaller sites increased monetization rates. eCPMs for large sites dropped 52 percent from 38 cents in March to 18 cents April. Medium sites dropped from 34 to 33 cents, while small sites increased from $1.18 to $1.29.

Although the overall drop reflects the general economic downturn, Pubmatic said, web publishers are also spreading their bets more widely, especially to cheaper, foreign-based ad networks, and targeting ads more discriminately.



HEXUS Forums :: 4 Comments

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Posted by TiG - Wed 14 May 2008 21:17
With this being the second month of the publishing of this index is this likely not down to them getting some figures wrong?, 23% seems ridiculous figure for a month. I'm no advertising magnate, but do they not have some contracts in place that last for more than a month on pricing or is it all a bit more dynamic?.

If so what do hexus think to the figures?, has hexus advertising dropped 23% in a single month?. I'm not sure i give any of those figures much value, maybe when we see next months figures we'll see a 15% rise while they get their figures set a little better.

TiG
Posted by chuckskull - Wed 14 May 2008 22:14
I have to agree with TiG that it seems a rather drastic swing. I've not heard of any sites that rely advertising to survive. Hexus for one(unless you're selling/doing something I don't know). Has it affected you this drastically? I know you wont release exact figures, but I am curious.
Posted by Scott B - Thu 15 May 2008 06:58
The observation that, with this being a new index the figures need to be taken with a pinch of salt, is valid. However, it should be noted that the figures are segmented according to perceived size of site.
Posted by TiG - Thu 15 May 2008 08:53
Yeah by HALF!. On sites that I would have thought have more power to protect how much they charge with 100mil+ hits a month.

I've read through who produced the figures and what methods they've used and considering how small the company is I really have to say I find the credability of the report completely worthless.

Just my 2p tho :)

TiG