Ad Networks Surge, CPMs Plunge

Posted by TimJustus under Online Marketing
From http://www.marketingcharts.com 4650 days ago
Made Hot by: on August 17, 2008 6:47 am

The use of “ad networks” surged from 5% of total ad impressions sold in 2006 to 30% in 2007.

As online publishers experience growth rates of 20-30% in ad revenue, the race to create advertising opportunities has left publishers with excess inventory that they are selling via ad networks at up to 90% discounts versus direct sales rates.

That trend is particularly foreboding for branded online publishers, which traditionally earn $10-$20 CPM (cost per thousand ad impressions) and therefore risk severe price erosion.