PALO ALTO, CA -- 04/07/08 --
PubMatic (
www.pubmatic.com), the world's
first service that automates and optimizes ad inventory decision-making for
Web publishers, today launched the PubMatic AdPrice Index
(
www.adpriceindex.com), an industry-wide measure of online ad network
pricing for publishers. The PubMatic AdPrice Index benchmarks effective
cost per thousand impression (eCPM) data from more than 3,000 Web sites on
a monthly basis in order to provide benchmark data for publishers and
trending information.
Prepared by independent statisticians and industry experts Dr. Albert
Madansky and Dr. Michele Madansky, the PubMatic AdPrice Index's key
findings include:
-- 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 (over 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 are 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."
The data released today is the first in a series of monthly releases of the
PubMatic AdPrice Index. Showing for the first time ever net publisher
monetization on inventory sold to ad networks, the PubMatic AdPrice Index
provides transparency for the ad industry so that publishers, ad networks
and advertisers can keep up with changes in traffic monetization and better
plan for the future of their businesses.
For the complete April 2008 edition of the PubMatic AdPrice Index, please
visit (www.adpriceindex.com).
About the PubMatic AdPrice Index / Methodology
-- The PubMatic AdPrice Index represents net publisher monetization via ad
networks and excludes ad networks' share of ad spends as well as
inventory sold directly by publishers to ad agencies or advertisers.
-- The PubMatic AdPrice Index is comprised of over 3,000 Web sites,
approximately 85% of which are based in the US. The PubMatic AdPrice
Index is prepared by leading independent statisticians and industry
experts:
-- Albert Madansky, Ph.D. is the H.G.B. Alexander Professor Emeritus
of Business Administration at the University of Chicago Graduate
School of Business, and was the recipient of the 2005 American
Statistical Association Founders Award
-- Michele Madansky, Ph.D. is a media and market research consultant
and former VP of Global Market Research for Yahoo!
About PubMatic
PubMatic is the world's first service that increases Web publishers'
revenue by automating and optimizing ad serving decisions. PubMatic
significantly increases ad sales revenue for more than 3,000 publishers by
optimizing ad serving decisions across hundreds of ad networks and by using
sophisticated algorithms to optimize the layout of text and display ads.
PubMatic is a service of advertising company Komli and is venture backed by
Draper Fisher Jurvetson, Nexus India Capital, and Helion Ventures. Find out
more at www.pubmatic.com.
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