July 15, 2008, 12:00 AM

Online display ad prices stagnant, new research shows

The average price for an online display ad sold via ad networks fell less than 1% from May’s $0.37 to June’s $0.36, according to research from PubMatic.

Katie Deatsch

Senior Editor

The average price for an online display ad as measured using a cost per thousand impressions payment method and sold not directly but via ad networks fell less than 1% from May’s $0.37 to June’s $0.36, according to research from online display ad automation and optimization services provider PubMatic.

Smaller web sites-defined by PubMatic as delivering less than 1 million page views per month-offering advertising space suffered a large drop: from $1.13 in May to $0.81 in June. The price for a display ad on medium-sized web sites-1 million to 100 million page views per month-increased moderately, from $0.33 in May to $0.46 in June. And the price on large web sites-more than 100 million page views per month-rose slightly, from May’s $0.21 to June’s $0.23.

“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,” says Rajeev Goel, co-founder and general manager of PubMatic. “Online advertising is in a holding pattern like many sectors of the U.S. economy.”

The research also highlighted online display ad prices for publisher sites by market. Only one category out of five measured showed any improvement month to month: The price for display ads for entertainment sites climbed from $0.29 in May to $0.40 in June.

The biggest drop was registered in the news sites category, from $1.10 in May to $0.48 in June. The price on gaming sites was at $1.00 in May and dropped to $0.80 in June. Social network display ad prices went from $0.32 in May to $0.27 in June. And the average price on technology web sites fell from $0.65 in May to $0.63 in June.

PubMatic began publishing the AdPrice Index for the month of April and consequently does not yet have any year-over-year comparison data. The data is gleaned from more than 4,000 web sites, 85% of which are based in the U.S.

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