Ad Network Prices Drop on Small Websites

by Peg Corwin

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Today eMarketer reported in Ad Network Prices Take a Hit that ad network prices for small, medium and large websites have dropped, reflecting the condition of the overall economy. Percentage drops are 52%, 23% and 54% respectively from the previous year.

The category of interest to this blog’s readers is “small.” But eMarketer defines “small” as less than 1 million page views per month.  (To even be included in an ad network, your site has to have a high minimum number of pageviews.)  Stats include pricing data only for banner and text ads sold through ad networks.

With these caveats, CPM prices on small websites have dropped: $1.24 (Q4 2007), $.97 (Q1 2008), $.86 (Q2 2008), $.61 (Q3 2008), $61 (Q4 2008.)

What does this mean?  “For those who buy ads on networks, that may mean getting more for their money.  For publishers, it may mean working harder for it,” say eMarketer.  For those starting or running websites based on the advertising model, projections may need to be revised, at least in the short term.

Are you using ad networks? Please leave a comment about your experience.

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