Online Display Ad CPMs Rebound in Q209

August 20, 2009

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Prices for online display ads are on the rise for several verticals, according to Adify. The Adify Vertical Gauge Report, Q2 2009, found that, while median CPMs for online display ads from Q4 08 to Q2 09 were essentially unchanged, real estate network CPMs grew 100%, to an average of $6.49, and sports CPMs, which dipped slightly in the first quarter, were up 18% in Q2, to $7.09.

Premium inventory on vertical ad networks has held steady value for three consecutive quarters, led by significant gains in select verticals.

In addition to real estate and sports, news-oriented content commanded CPMs with a median value over $10, representing 20% growth over Q4 08, but a decrease since Q1 09’s Presidential inauguration and the temporary news audience growth that went with it.

Travel, technology, automotive, and health held onto the highest absolute CPMs, despite fluctuations. These traditional CPM leaders are continuing to command the highest rates among premium vertical ad networks. Technology ($16.01) experienced a significant decrease in Q1 and has since begun to rebound. Both automotive ($15.33) and travel ($19.89) have grown over Q4 2008 with some contraction since Q1 2009.

Moms/parents and beauty/fashion verticals are down slightly. This fits expectations because these verticals have cyclical advertising seasons. Q4 08 was strong due to committed campaigns and traditional holiday advertising. Adify expects these verticals to experience CPM growth in late Q3 09 and throughout Q4.

“While the online advertising spend continues to grow overall, there are important variances between key verticals that reveal much more about how the economy is recovering and how the online advertising industry is responding to that recovery,” said Russ Fradin, president of Adify.

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