CORRECTING and REPLACING Online Ad Prices Remain Stagnant for Third Month Straight

Mirrors Economy’s Holding Pattern

PALO ALTO, Calif.–(EMWNews)–

Headline of release should read: Online Ad Prices Remain Stagnant for

Third Month Straight (sted Online Ad Prices Remain Stagnant for Second

Month Straight).

The corrected release reads:

ONLINE AD PRICES REMAIN STAGNANT FOR THIRD MONTH STRAIGHT

Online Ad Optimizer PubMatic Issues July Ad Pricing Index that

Mirrors Economy’s Holding Pattern

PubMatic (www.pubmatic.com), the

world’s first service that automates and

optimizes ad inventory decision-making for Web publishers, today

released its monthly PubMatic AdPrice Index (www.pubmatic.com/adpriceindex),

an industry-wide measure of online ad network pricing for publishers.

For the third month in a row, the index shows very little movement in

the average price of online advertising from the previous month, lending

credibility to the argument that the slowness in the US economy

continues to affect online ad pricing.

Key Findings:

• On average, Web site monetization decreased by less than one percent

  from $0.37 in May to $.036 in June. *(Pricing data reflects net

  publisher monetization via ad networks and excludes ad networks’

  share of ad spends as well as inventory sold directly by publishers to

  ad agencies or advertisers).

• By size, small size Web sites had the largest drop to $0.81 in June,

  down from $1.13 in May.

• By vertical, News and Gaming had significant drops, sliding $0.62 and

  $0.20, respectively.

• Entertainment showed the only increase jumping $0.11 from $0.29 in May

  to $0.40 in June.

The latest data from the AdPrice Index shows that overall online ad

pricing made a less than one percent change, moving from $0.37 to $0.36,

but there were a few surprises. Small size Web sites (less than 1

million page views per month) in June dropped a significant $0.32 from

May, landing at an average eCPM of $0.81, down from $1.13. Medium Web

sites (1 million to 100 million page views per month), however, made a

moderate $0.13 jump from $0.33 in May to $0.46 in June. Large Web sites

(100 million+ page views per moth) also rose, but only slightly, moving

from May’s $0.21 to June’s

$0.23.

The July PubMatic AdPrice Index findings also revealed that only one

vertical category out of five showed any improvement in their overall

eCPM – Entertainment climbed to $0.40 in June from May’s

$0.29. The biggest drop in the verticals, by far, was News; it went from

$1.10 in May, to less than half of that, or $0.48 in June. Gaming, which

was at $1.00 from the month of May went down in June to $0.80. Social

Networks, the lowest performing category already, went down another

$0.05, going from $0.32 in May to $0.27 in June. The Technology vertical

had little movement, but it was still down; in May its average eCPM was

$0.65 compared to June’s $0.63.

“The July PubMatic AdPrice Index data shows

that while online ad pricing has not dropped significantly overall in

the past few months, it still is not as high as it was a few months ago,”

said Rajeev Goel, co-founder and general manager of PubMatic. “Online

advertising is in a holding pattern like many sectors of the US economy.”

The data released today is part of a series of monthly releases of the

PubMatic AdPrice Index. Showing for the first time ever net publisher

monetization on inventory sold to ad networks, the PubMatic AdPrice

Index provides transparency for the ad industry so that publishers, ad

networks and advertisers can keep up with changes in traffic

monetization and better plan for the future of their businesses.

For the complete July 2008 edition of the PubMatic AdPrice Index, please

visit www.pubmatic.com/adpriceindex.

About the PubMatic AdPrice Index / Methodology

• The PubMatic AdPrice Index represents net publisher monetization via

  ad networks and excludes ad networks’ share

  of ad spends as well as inventory sold directly by publishers to ad

  agencies or advertisers.

• The PubMatic AdPrice Index is comprised of over 4,000 Web sites,

  approximately 85 percent of which are based in the US. The PubMatic

  AdPrice Index is prepared by leading independent statisticians and

  industry experts:

  • Albert Madansky, Ph.D. is the H.G.B. Alexander Professor Emeritus

    of Business Administration at the University of Chicago Graduate

    School of Business, and was the recipient of the 2005 American

    Statistical Association Founders Award

  • Michele Madansky, Ph.D. is a media and market research consultant

    and former VP of Global Market Research for Yahoo!

About PubMatic

PubMatic is the world’s first service that increases Web publishers’

revenue by automating and optimizing ad serving decisions. PubMatic

significantly increases ad sales revenue for more than 4,000 publishers

by optimizing ad serving decisions across hundreds of ad networks and by

using sophisticated algorithms to optimize the layout of text and

display ads. PubMatic is a service of advertising company Komli and is

venture backed by Draper Fisher Jurvetson, Nexus India Capital, and

Helion Ventures. Find out more at www.pubmatic.com.

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