Report: Send Interactive Ad Dollars to Smaller Sites
ADOTAS — Whether it’s on the playground or online, it sometimes seems like the little guys are screwed from the get-go – they just don’t have the tools, technology or infrastructure to compete against the big bullies boys – they’re destined to lose.
For years, the Web has been aggrandized as a tool for democratizing personal interactions. But it’s taken great strides in the business realm as well … and PubMatic has released data that shows just how far smaller sites have come. According to their findings, advertising on small Web sites – not medium or large sites — is significantly more lucrative for ad clients.
Today they announced the launch of the PubMatic AdPrice Index – an industry-wide measure of interactive advertising network pricing for publishers. It benchmarks effective cost per thousand (eCPM) data from more than 3,000 sites on a monthly basis.
The data was compiled by industry experts Dr. Albert Madansky and Dr. Michele Madansky.
Key findings:
• On average, small niche Web sites (less than 1 million pages views per month) provided significantly stronger performance for advertisers than medium Web sites (1 million to 100 million page views per month) and large Web sites (more than 100 million page views per month): eCPM averages for March 2008 are $1.18 for small Web sites, $0.34 for medium Web sites, and $0.38 for large Web sites. The large Web site segment includes a higher proportion of social networking, entertainment, and gaming sites than any other segment.
• Pricing data reflects net publisher monetization via ad networks and excludes ad networks’ share of ad spend as well as inventory sold directly by publishers to ad agencies or advertisers.
• In March 2008, 76% of small publishers garnered net publisher eCPMs from ad networks of under $1.00, compared to 95% of medium and large Web sites.
• eCPMs for social networking sites are among the lowest by vertical, though they have increased 69% from $0.22 in January to $0.37 in March. The low monetization rates on these high volume sites are consistent with recent quarterly earnings statements from Google and News Corp.
“What we’re seeing is that advertisers are relying on the targeted, niche audiences that smaller Web sites represent, leading to a significant variance in net publisher eCPMs from ad networks depending on Web site size,” said Greg Stuart, former CEO of the Interactive Advertising Bureau and member of PubMatic’s advisory board. “The traditional industry thinking is that larger Web sites perform better than smaller Web sites because of improved efficiency, reach and brand power, but that’s simply not the case.”
PubMatic is a service that automates and optimizes ad inventory decision-making for publishers. For a complete report, go to www.adpriceindex.com.
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