• by July 13, 2001

According to a new study by the Internet research company Jupiter MMXI, European online advertising prices have fallen by 30% over the past year and are expected to continue to drop over the next six months. The report shows that advertisers paid EUR30 on average for 1,000 page impressions in June 2000 while they now pay EUR20.

Jupiter believes that the reason for the sharp decrease lies in a highly competitive market where the supply of space on sites and sales networks largely exceeds the demand for online advertising. The surplus of unsold ad space is worth between EUR60m-70m every month, with the majority of European publishers having over 60% of their ad space unused, Jupiter estimates.

Jupiter notes that the current buyer's market has allowed advertisers to change the pricing dynamics - they now increasingly pay for online advertising based on performance, such as clicks, leads or purchases, when they earlier paid for the number of impressions.

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