The Future of Print

Online Ad Pricing Report – Display ad revenue dropping fast (Pubmatic)

Posted in Boom, Doom by futureofprint on February 2, 2009

Executive Summary:

The data reflected in this report shows a significant decline in Q4 2008 online display ad pricing compared to Q4 2007 for all sizes of websites and all vertical categories, underscoring the fact that the US economy is in a recession and that the online advertising sector is not immune to it. However, the news isn’t entirely negative and shows some promise for the online advertising sector.

While the ad price averages across most sites also dropped in Q4 2008 from Q3 2008, the quarter-to-quarter drops were not significant by website size or vertical category; this may be an indicator that holiday ad sales helped stave off the consistent bigger drops that happened from quarter to quarter throughout 2008. Some vertical categories even showed improvement from the previous quarter.

It is clear that growth in online display advertising is slowing consistent with other advertising sectors, but not to the same magnitude. In the coming quarters the average pricing for display advertising may continue to drop consistent with seasonal cycles.

AdPriceIndex_Quarterly_Q4_08.pdf (application/pdf Object).

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