52472 12 3 econsultancy_xml <p>Long gone is the heyday of being able to charge £20 CPM for broad run of site display advertising. </p> <p>Such was the shortage of inventory, leading ISPs and portals could charge advertisers a premium to reach consumers.</p> <p>With internet usage rates increasing rapidly, <strong>broadband penetration hitting 60%</strong> of the total UK population and the arrival of social networking, there are huge volumes of inventory now available.</p> <p>While spend in online advertising continues to increase at a rapid rate, with budgets being switched from TV, press and outdoor, the number of users is also increasing, with current <strong>supply outstripping demand</strong>.</p> <p>Sites such as MySpace and Facebook have become so popular with users viewing hundreds of pages each time they visit. </p> <p>For example, in September 2007 Facebook had over <strong>14.7bn page views</strong>, each having the potential to contain a display advert.</p> <p>With this huge volume of inventory, millions of impressions are going unsold every month and CPM rates have inevitably fallen, hitting margins.</p> <p>In recent months I have been purchasing media from some of the leading sites for as little as £0.50 CPM.</p> <p>While increasing traffic will have a short term effect of counteracting this loss for publishers, <strong>long term this is not sustainable</strong>.</p> <p>Publishers need to diversify their offering with increased flexibility and choice, allowing higher rates to be charged.</p> <p> <strong>Rich Media</strong> has played a major part of this. Publishers that allow expandable, overlay, video and interactive ads can typically charge a premium over standard formats.</p> <p> <strong>In-stream video</strong> is also starting to gain popularity, where a short video advert is displayed as a pre-roll or overlay of the main video feature.</p> <p>Some sites are also looking to offer <strong>custom solutions</strong> for big advertisers. </p> <p>Page take-overs, <strong>podcast sponsorship,</strong> advertorial content and mobile are all way to build exclusive packages and charge a premium.</p> <p>Publishers need to offer diversify in order to protect their margins and ensure the model of display advertising remains sustainable.</p> <p> <strong>Matthew Finch - <a href="http://econsultancy.com/blog/authors/matthew-finch"><em>view blog</em></a></strong> </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph>Long gone is the heyday of being able to charge £20 CPM for broad run of site display advertising. </Paragraph> <Paragraph>Such was the shortage of inventory, leading ISPs and portals could charge advertisers a premium to reach consumers.</Paragraph> <Paragraph>With internet usage rates increasing rapidly, <Emphasis>broadband penetration hitting 60%</Emphasis> of the total UK population and the arrival of social networking, there are huge volumes of inventory now available.</Paragraph> <Paragraph>While spend in online advertising continues to increase at a rapid rate, with budgets being switched from TV, press and outdoor, the number of users is also increasing, with current <Emphasis>supply outstripping demand</Emphasis>.</Paragraph> <Paragraph>Sites such as MySpace and Facebook have become so popular with users viewing hundreds of pages each time they visit. </Paragraph> <Paragraph>For example, in September 2007 Facebook had over <Emphasis>14.7bn page views</Emphasis>, each having the potential to contain a display advert.</Paragraph> <Paragraph>With this huge volume of inventory, millions of impressions are going unsold every month and CPM rates have inevitably fallen, hitting margins.</Paragraph> <Paragraph>In recent months I have been purchasing media from some of the leading sites for as little as £0.50 CPM.</Paragraph> <Paragraph>While increasing traffic will have a short term effect of counteracting this loss for publishers, <Emphasis>long term this is not sustainable</Emphasis>.</Paragraph> <Paragraph>Publishers need to diversify their offering with increased flexibility and choice, allowing higher rates to be charged.</Paragraph> <Paragraph> <Emphasis>Rich Media</Emphasis> has played a major part of this. Publishers that allow expandable, overlay, video and interactive ads can typically charge a premium over standard formats.</Paragraph> <Paragraph> <Emphasis>In-stream video</Emphasis> is also starting to gain popularity, where a short video advert is displayed as a pre-roll or overlay of the main video feature.</Paragraph> <Paragraph>Some sites are also looking to offer <Emphasis>custom solutions</Emphasis> for big advertisers. </Paragraph> <Paragraph>Page take-overs, <Emphasis>podcast sponsorship,</Emphasis> advertorial content and mobile are all way to build exclusive packages and charge a premium.</Paragraph> <Paragraph>Publishers need to offer diversify in order to protect their margins and ensure the model of display advertising remains sustainable.</Paragraph> <Paragraph> <Emphasis>Matthew Finch - <Link URL="http://econsultancy.com/blog/authors/matthew-finch" Window="Self"><Quote>view blog</Quote></Link></Emphasis> </Paragraph> </FormattedContent> 2008-02-05T07:56:00+00:00 6 1 econsultancy_xml <p> <strong>With vast amounts of inventory available, increased competition and dropping response rates, many publishers are seeing their display advertising CPM rates falling.</strong> </p> <p>The challenge is to offer advertisers increased flexibility and new formats in order to protect margins.</p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Emphasis>With vast amounts of inventory available, increased competition and dropping response rates, many publishers are seeing their display advertising CPM rates falling.</Emphasis> </Paragraph> <Paragraph>The challenge is to offer advertisers increased flexibility and new formats in order to protect margins.</Paragraph> </FormattedContent> false 2143 <p>Econsultancy has published an <strong><a href="http://econsultancy.com/reports/online-advertising-networks-buyers-guide">Online Advertising Networks Buyer's Guide</a></strong> which contains an examination of this marketplace and profiles of 23 leading networks. We have also produced an <strong><a href="http://econsultancy.com/reports/online-advertising-survey">Online Advertising Survey</a></strong>, based on a survey of advertisers and agencies. For more stats and charts, see also our <strong><a href="http://econsultancy.com/reports/internet-advertising-statistics">Online Advertising Statistics compendium</a></strong>.</p> <p>Econsultancy has published an <strong><a href="http://econsultancy.com/reports/online-advertising-networks-buyers-guide">Online Advertising Networks Buyer's Guide</a></strong> which contains an examination of this marketplace and profiles of 23 leading networks. We have also produced an <strong><a href="http://econsultancy.com/reports/online-advertising-survey">Online Advertising Survey</a></strong>, based on a survey of advertisers and agencies. For more stats and charts, see also our <strong><a href="http://econsultancy.com/reports/internet-advertising-statistics">Online Advertising Statistics compendium</a></strong>.</p> 364989 The big CPM squeeze false 2008-02-05T10:00:00+00:00 the-big-cpm-squeeze 2009-04-29T19:10:26+01:00 2009-10-13T09:30:31+01:00 829