Most Publishers See Online Display Ad Revenue Hike

October 21, 2011

This article is included in these additional categories:

Digital | Retail & E-Commerce

publisher-revenue-increase.jpgAlmost three in 4 publishers (73%) say revenue from online display ads has increased in the last year, according to [pdf] a report from eConsultancy released in October 2011. Data from the “Online Publishers Survey Report” indicates that almost 40% more publishers are enjoying increased revenues compared to 2009, when just over half (53%) saw increased revenues. In 2011, just 13% of publishers have experienced a decrease in revenues, about 50% less than the percentage (27%) who responded that way in 2009.

1 in 4 Publishers Attribute Almost All Revenue to Online Advertising

revenue-from-online-advertising.jpgAccording to the report, 26% of the publishers surveyed earn more than 91% of their revenue from online advertising, almost 45% higher than the share of publishers (18%) who earn less than 10% of their revenue from this source. Breaking the figures down geographically, there are some clear differences at both ends of the scale between US and Canadian publishers on the one hand, and European publishers on the other.

For example, while 31% of US and Canadian publishers earn more than 91% of their revenue from online advertising, just 18% of European publishers report doing the same. By contrast, a larger percentage of European publishers (23%) report earning less than 10% of their revenue from this source, compared to just 14% of US and Canadian publishers. Taken in sum, on average, 52% of the publishers’ revenue was derived from this source.

RTB Contributes to Remnant Revenue Increase

rtb-remnant-revenue.jpgeConsultancy’s data indicates that the average increase in value of remnant inventory due to real time bidding (RTB) is 20%. Close to half (46%) of the publishers surveyed reported an increase of 1-10%, while one in 10 indicated that their remnant revenue rose by over 50% as a result of RTB. Only 5% of respondents reported seeing no increase in revenue.

Other Findings

  • 44% of publishers sell their display inventory on a real-time bidding basis, with a higher proportion of North American respondents (49%) indicating that they do this, compared to 41% in Europe.
  • On average, a quarter of publishers’ remnant display inventory is sold on an RTB basis.
  • 68% of ad network respondents said they are investing in RTB technology, while a further 17% plan to do so within the next 12 months.
  • 37% of networks are using RTB for both buying and selling, with a higher proportion of European respondents doing both (37% compared to 31% for North America).

About the Data: eConsultancy’s data is based on a survey of nearly 500 online publishers, sales houses and rep firms.

IgnitionOne: Digital Display Ad Investment Rises as Cost Falls

Advertisers increased their investment in digital display advertising a healthy 21% during Q3 2011, compared to Q3 2010, as CPM (cost per thousand views) plummeted about 23%, according to data released in October 2011 by IgnitionOne.

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