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PubMatic Launches Benchmark Ad Network Pricing Index Index Shows Niche Web Sites Outperform Larger Web Sites, Social Network Monetization Low but Growing

SOURCE:

PubMatic

2008-04-07 05:32:00

PubMatic Launches Benchmark Ad Network Pricing Index

Index Shows Niche Web Sites Outperform Larger Web Sites, Social Network Monetization Low but Growing

PALO ALTO, CA–( EMWNews – April 7, 2008) – PubMatic (www.pubmatic.com), the world’s

first service that automates and optimizes ad inventory decision-making for

Web publishers, today launched the PubMatic AdPrice Index

(www.adpriceindex.com), an industry-wide measure of online ad network

pricing for publishers. The PubMatic AdPrice Index benchmarks effective

cost per thousand impression (eCPM) data from more than 3,000 Web sites on

a monthly basis in order to provide benchmark data for publishers and

trending information.

Prepared by independent statisticians and industry experts Dr. Albert

Madansky and Dr. Michele Madansky, the PubMatic AdPrice Index’s key

findings include:


--  On average, small niche Web sites (less than 1 million pages views per

    month) provided significantly stronger performance for advertisers than

    medium Web sites (1 million to 100 million page views per month) and large

    Web sites (over 100 million page views per month): eCPM averages for March

    2008 are $1.18 for small Web sites, $0.34 for medium Web sites, and $0.38

    for large Web sites.  The large Web site segment includes a higher

    proportion of social networking, entertainment, and gaming sites than any

    other segment.

--  Pricing data reflects net publisher monetization via ad networks and

    excludes ad networks' share of ad spend as well as inventory sold directly

    by publishers to ad agencies or advertisers.

--  In March 2008, 76% of small publishers garnered net publisher eCPMs

    from ad networks of under $1.00, compared to 95% of medium and large Web

    sites.

--  eCPMs for social networking sites are among the lowest by vertical,

    though they have increased 69% from $0.22 in January to $0.37 in March.

    The low monetization rates on these high volume sites are consistent with

    recent quarterly earnings statements from Google and News Corp.

    

“What we’re seeing is that advertisers are relying on the targeted, niche

audiences that smaller Web sites represent, leading to a significant

variance in net publisher eCPMs from ad networks depending on Web site

size,” said Greg Stuart, former CEO of the Interactive Advertising Bureau

and member of PubMatic’s advisory board. “The traditional industry

thinking is that larger Web sites perform better than smaller Web sites

because of improved efficiency, reach, and brand power, but that’s simply

not the case.”

The data released today is the first in 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 April 2008 edition of the PubMatic AdPrice Index, please

visit (www.adpriceindex.com).

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 3,000 Web sites,

    approximately 85% 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 3,000 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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