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BREAKING NEWS & VIEWS
Is Display Advertising Up or Down?Monday, July 27, 2009 How is the display market really trending online this year? It all depends on whom you ask. Conventional wisdom has it that CPMs are plummeting as competition among ad networks and challenged premium ad sales conspire to drive the market downward. And yet this week ad optimization company PubMatic issued a report suggesting that the display market had bottomed. The company monitors pricing across the many ad networks that trade in remnant and secondary inventory. “The online advertising prices that PubMatic regularly tracks have been going up every month consecutively since January of this year,” reported company co-founder Rajeev Goel at the site last week. PubMatic, which showed declining CPM rates throughout last year, argues that improved targeting technologies are helping to bring CPMs back up.  Some media buyers beg to differ and see these same numbers more as a sign of distress among major media. ClickZ columnist Zachary Rodgers interviewed agency executives from Razorfish and MediaContacts who were skeptical that online ad pricing was “turning around,” as PubMatic claims. They speculate that any upward trend in CPMs may be a sign that premium Web sites are starting to dump more quality inventory into the ad network system. As direct sales teams continue to come up short in their goals for premium sales, more of that space gets moved over to networks. The truth about the real state of the digital ad economy likely will not be known until next year when full-year reporting across networks and major media can be assessed. If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com
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