Report: 23% drop in online ad rates from economic slowdown
Silicon Valley / San Jose Business Journal
Ad optimization software company PubMatic Inc. on Tuesday released its second monthly PubMatic AdPrice Index, which indicates that the economic slowdown in the U.S. has led to a 23 percent drop in overall monetization for the online advertising industry.
Palo Alto-based PubMatic said the index is based on data from over 3,000 publishers and billions of ad impressions.
Large Web sites fared the worst while small Web sites managed to maintain their monetization rates, PubMatic said, adding that eCPMs (effective cost per thousand impressions) for Web sites with more than 100 million page views per month dropped dramatically by 52 percent from 38 cents in March to 18 cents in April.
Web sites with 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.
On average, Web site monetization dropped by 23 percent from 49 cents in March to 38 cents in April, the report said, with social networking leading the plunge with monetization dropping from 37 cents in March to 19 cents in April.
Entertainment monetization dropped 17 percent from 40 cents in March to 33 cents in April. Gaming and sports were down 4 percent and 5 percent, respectively.
Technology remained relatively flat at 83 cents in April vs. 82 cents in March.
In April, 77 percent of small Web sites garnered net publisher eCPMs from ad networks of under $1, compared with 95 percent of medium Web sites and 100 percent of large web sites.
PubMatic is venture backed by Nexus India Capital, Menlo Park-based Draper Fisher Jurvetson and Helion Ventures, which has an office in Bangalore, India.
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