Tuesday, May 13, 2008

Metrics: Trouble in Online Adland

PubMatic, a Palo Alto, Calif.-based start-up focused on online just released its PubMatic AdPrice Index
based on data from over 3,000 publishers and billions of ad
impressions. The findings of this month’s report: the US economic
slowdown is beginning to impact online advertising in a big way, with
overall monetization dropping by 23% - 38 cents eCPM in March vs 49
cents eCPM in March. Not a big surprise since housing related
advertising was big on the web. Even electronics retailers are feeling
the pinch and cutting back.

* eCPMs for large Web sites (more than 100 million page views per
month) dropped dramatically by 52% from 38 cents in March to 18 cents
in April 2008.

* Medium Web sites (1 million to 100 million page views per month) were
nearly flat, with monetization dropping from 34 cents in March to 33
cents in April.

* Small Web sites managed to improve their monetization, increasing from $1.17 in March to $1.29 in April.

The overall trends you pick up from report are not that surprising.
For instance, the improved monetization of small websites because they
have more focused content presents more targeted advertising
opportunity. Again no surprise that Social Networking led the plunge
with monetization dropping 47% from 37 cents in March to 19 cents in
April, below January lows of 22 cents. Too much damn inventory.

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