Pubmatic, a company that specializes in Ad optimization for publishers, recently published their report on Q3 pricing trends in the Internet. Some highlights/comments below:
1. Social remains the lowest priced category coming in at 21 cents....with the continued explosion of pages and the reticence of brand advertisers to embrace this category, tough sailing is ahead.
2. Q1-Q3 saw an average display ad (CPM) drop 27%
3. Small sites, probably due to more effective targeting, enjoy a CPM nearly 3x that of large sites
I am not sure small companies can 'cut their way' to prosperity. Unless this negative trend is arrested, get ready for a wave of closures of venture backed companies....social firms leading the way, with video a close second.
With data such as this, probably no surprise that Eyeblaster just announced a RIF....