Q4 Ad Pricing Steadied By Holiday Advertising

  • January 15, 2009
Pricing for online display advertising in the fourth quarter was only down slightly from the prior quarter, signaling a steadying of the market after steep quarterly drops during 2008. Average effective CPMs dropped to 26 cents from 27 cents in the third quarter, according to the latest figures from PubMatic's AdPrice Index.

"This may be an indicator that the online ad sector got just enough of a boost from holiday advertising to keep ad rates steady," according to PubMatic's fourth-quarter report released Wednesday.

But the average CPM of 50 cents a year ago has been cut nearly in half. Display ad rates on small, medium and large sites have dropped 52%, 23% and 54%, respectively, from the year-earlier period. Business and finance sites have suffered the biggest drop in the last year, with CPMS declining 61% to 83 cents.

Some publisher categories, however, have managed to make gains despite the downturn. Gaming, technology, sports, entertainment and music sites all saw ad rates climb in 2008.--Mark Walsh

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