Online ad prices have been declining throughout 2008 and small sites are among the most affected by the faltering economy, according to MarketingVOX.
The AdIndex, a quarterly measure of online ad network pricing, shows that publishers of all sizes are feeling the pinch of a nationwide economic slowdown.
Small sites continue to command better pricing for eCPMs – now at $0.61 on average for Q3 – but these price levels have declined quarter-to-quarter. eCPMs for large sites held steady in Q3, but at a lower pricing base of $0.18.
As Yogi Berra once said, “It’s deja vu all over again”. Just like in the recession 2000, I expect we’ll see a surge in new affiliates with the CPM rates shrinking.
{ 5 comments }
eCPM is the effective CPM, which is the cost for an advertiser to run 1000 ads on a site.
It relates to affiliate marketing, because the option to run advertising through this metric is drying up, so some of the sites that were running CPM ads will change over to working on performance via affiliate ads.
As far as how it will impact affiliates, I think there will be more competition, so those who aren't putting as much time into it are going to see decreased returns.
But if you invest time and money into growing an affiliate business now, I think it's a great time to succeed.
Hi Shawn, could you please explain in more detail what the eCPMs are and exactly how it relates to an affiliate's website? Also, how does the CPM relate to an affiliates site? How do you think the economy will affect affiliates and should we be overly concerned with the expense of operating a site and possibly not making much commission? Thanks for your help!
eCPM is the effective CPM, which is the cost for an advertiser to run 1000 ads on a site.
It relates to affiliate marketing, because the option to run advertising through this metric is drying up, so some of the sites that were running CPM ads will change over to working on performance via affiliate ads.
As far as how it will impact affiliates, I think there will be more competition, so those who aren't putting as much time into it are going to see decreased returns.
But if you invest time and money into growing an affiliate business now, I think it's a great time to succeed.
Hi Shawn, could you please explain in more detail what the eCPMs are and exactly how it relates to an affiliate's website? Also, how does the CPM relate to an affiliates site? How do you think the economy will affect affiliates and should we be overly concerned with the expense of operating a site and possibly not making much commission? Thanks for your help!
Count me in as one who is putting a lot of time into affiliate marketing this year.
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