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20 January 2009

Recession brings drop in online ad prices

The recession has brought some relief to internet marketers with 2008 seeing a significant decline in online display ad prices.
 
Quarterly data published by ad revenue optimisation company PubMatic reveal decreases in ad prices over the course of 2008 of 52%, 23% and 54% for small, medium and large websites respectively.
 
However, prices stabilised towards the end of the year, with most industry sectors enjoying the traditional year-end boost in holiday advertising.
 
The figures demonstrate that there are positive sides to the economic downturn. Not only does online provide a more accountable way of justifying marketing spend, but it is also becoming better value for money.
 
On the other hand, the situation is rather more challenging for the websites that monetise their traffic through advertising, as they have seen their revenues gradually squeezed throughout the year.
 
This could signal a switch in emphasis in their SEO campaigns from monetising their hard-earned traffic purely by publishing ads to directly generating sales or building brand awareness.



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