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Are Display Ads Bouncing Back?

It's something everyone in this industry wants to know: When will the online ad market finally bounce back? As Peter Kafka notes, we have yet to see evidence in the earnings reports of industry bellwethers like Google and Yahoo. But according to data from Pubmatic, an ad optimization firm, prices for ad network inventory have increased a whopping 35% since the beginning of the year, signaling perhaps that online advertising's comeback is already underway.

Of course, "these numbers could be less meaningful than they look," Kafka says, as it's important to keep in mind that Pubmatic is only tracking prices for ad network inventory, and ad networks take market share away from premium display ads, which means these numbers won't do publishers much good at all. Another point to consider: these numbers are about pricing, not volume, so it doesn't tell us whether advertisers are spending more or less than they used to.

However, Kafka also checks in with two big, unnamed publishers that specialize in premium branded ads. They tell him that things have picked up recently as well, particularly among entertainment and consumer packaged goods advertisers, although they differed in their degree of enthusiasm.

Read the whole story at D: All Things Digital »

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