Recession/Economic downturn is seeing a sharp decline in display ad pricing – and as per Pubmatic’s AdPrice Index, the overall advertising budget has been slashed by 27% – Entertainment sector seems to be one of the most prominent one – pricing has dropped 42% since the last qtr.
eCPM Drop
Pubmatic monthly survey covers 5,000 sites (85% based in US), but the Indian story is no different.
What’s happening in Indian market?
ZenithOptimedia, a media buying agency has reduced its forecast for adspend growth to 4.3 per cent in 2008 (down from the 6.6 % growth forecast it had published in June earlier)..
- The display ad slowdown has started and big advertisers like IBM have slashed the budget almost by 40%.
- Travel sites (i.e. OTAs), one of the most active sector in display advertising spend have slashed the budget bigtime and many of the newly launched ad networks are facing the heat – they are offering packages (even CPC) at a damn cheap price to advertisers.
These are testing times for content sites/portals and the downturn will (hopefully) witness evolution in the business model (maybe death of freemium)?
What’s your take on these numbers?
Download Pubmatic Report
Recommended: Demystifying SEO and SEM for Startups
