Will the Bad Economy Result in a Deluge of New Affiliates?

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.

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