CPM Ad Rates Drop in Q1 2009
According to the Rubicon Project, CPM ad rates significantly dropped from the fourth quarter of 2008 to the first quarter of 2009. This drop was expected because seasonal pressures, post-holiday budget adjustments generally result in a 20-30% drop in CPM ad rates. Additionally, the global economic crisis has had a clear impact on the advertising industry. CPM ad rates alone can not determine the health of the advertising industry though, one must compare overall revenue and traffic performance as well. When same site and all site comparisons were examined for this quarter , it was found that there was significant growth in traffic and overall revenue amidst the lower CPM ad rates. As CPM ad rates have continued to drop, the online advertising industry has been remodeling and expanding. At the beginning of 2008, there were approximately 300 networks in existence, and now there are over 400 advertising networks. Also, these ad networks have been attempting to improve their efficiency and performance in order to bet out the competition. There has been a shift to a more performance oriented focus. By improving their efficiency, these ad networks have been able to better optimize ads, so that they are more likely to reach the target audience, which result in better performance for the advertisers and the publishers. Although, CPM ad rates have continued their decline, advertising revenue has increased for publishers and there are more opportunities for advertisers.
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