23:54 PM

Pubmatic: Online Ad Prices Are Rebounding


Pubmatic, which helps publishers monetize their ad inventory, reported that online ad pricing jumped 15 per cent in June compared with May and has grown 35 per cent since January 2009.

However, online ad prices are still below their year ago levels.

PubMatic data is based on 6,000 websites, 85 per cent are in the US.

Rajeev Goel, PubMatic Co-Founder and CEO said,"There is more hope that Fall online ad spending may reach near-normal levels."

Mr Goel told SVW:

"There are two fundamental trends driving this rise in pricing. On the supply side, we have seen a drop in the number of web services that rely on advertising revenue as their business models, as this model has fallen out of favor. Even some traditional businesses such as newspapers have been shrinking with respect to online presence."

"On the demand side, recent reports from Outsell and Forrester highlighted that even though total ad spending (traditional and online) has dropped due to the recession, online advertising is growing in terms of both market share and total spend. This includes display as well as search."

"In the last 1-2 years, we have seen a tremendous amount of innovation in the ecosystem around the 2nd channel (unsold ad inventory). Media exchanges, data exchanges, deep targeting ad networks, ad network optimizers, etc. have been growing in number and scale. As a result, inefficiency in the market is being eliminated and there is more and more data used for ad targeting. This is increasing pricing in the space."

A detailed report on ad pricing trends will be published Octoner 8th in New York at its Annual Ad Revenue Conference.