Online CPMs fell 46% since January
Demonstrating that even interactive advertising is not immune to the deterioration of the economy, PubMatic, a company which helps publishers optimize their revenues, reports that the average rate for 1,000 ad impressions (also known as CPM for "cost per thousand") fell to 27 cents in the third quarter from 50 cents in the fourth quarter of 2007. That’s a decline of 46% in the space of nine months.
PubMatic says its survey is based on the prices realized by the 4,000 publishers it assists in getting the most revenue for their available ad inventory. The company has been publishing this survey since the first of the year and, in the absence of any other similar ongoing report, the data gives a sense of the direction of the market.
In this case, the direction this year has been most assuredly down. After climbing in the first three months of the year, ad rates fell sharply in April, flattened from May through June and then plunged again in August, according to the survey.