CPM Ad Rates Rise 38% in Q2 2009
According to The Rubicon Project, CPM ad rates have risen 38% from the 1st to the 2nd quarter of 2009. Some niche’s CPM rates rose considerable more; music websites saw 270% rise in rates compared to the first quarter of 2009. This substantial rise in this niche can be attributed to The MTV Movie Awards (There was hype regarding Eminem’s encounter with the pantless Sacha Baron Cohen), the death of Michael Jackson, and ongoing tours by artists like Beyonce. On the other hand, some industries took a hit to their CPM rates; publishers in the travel industry took a 36% drop in their CPM ad rates. This can be attributed to consumer’s fear of the H1N1 virus and the current state of the economy. It appears that overall, CPM ad rates have finally exited the downward spiral that they were stuck in and are now are back on the rise. Publishers can expect future growth regarding ad rates as the future is no longer as bleak as it once was.
Any idea what those CPM ad rates for the music industry actually are?
It all really depends on your website, traffic, and who is advertising on your website. I know this is an ambiguous answer, but I’ve seen some music websites struggle to break the $0.10 CPM barrier. Other music niche sites can get CPM rates into the $10.00+ range. The quality of traffic that you deliver to your advertisers strongly affects your CPM rates. If your website is filled with non-converting Chinese and Indian traffic, then do not expect CPM rates above $0.10. If however, you have targeted United States, United Kingdom, and Canadian traffic that converts well for your advertisers, then you could expect $10.00+ CPM rates. Note that for this high of a CPM rate, your advertisers will likely contact you for advertising space, and they are still going to be making a profit; thus the products or services that your visitors will be seeing / converting to is a high cost product (aka a very targeted or high cost niche).