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Summary:

Ad spending on social networks like Facebook may be growing, but it’s not showing when it comes to CPMs — something which has implications…

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Ad spending on social networks like Facebook may be growing, but it’s not showing when it comes to CPMs — something which has implications for all web publishers. For years, premium pubs have complained that the social nets have flooded the web with a constant supply of inventory, which has only served to drive down ad prices, something that a comScore (NSDQ: SCOR) report confirms.

AdAge has the details: Last year, social nets, largely represented by Facebook and MySpace (NSDQ: NWS), took in an average CPM of just $0.56 — versus the $2.43 CPM for web ads in general. Therefore, comScore concludes, if it weren’t for Facebook and MySpace, CPMs would be roughly $2.99. In other words, social nets pulled CPMs down by as much as 18 percent over the past 12 months.

During Q1, comScore noted that Facebook served 176.3 billion display ads on its site, or 16.2 percent of the total. The social net

  1. Social Nets Pulled web advertising CPM price Down By 18 Percent Last Year

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  2. “For years, premium pubs have complained that the social nets have flooded the web with a constant supply of inventory”

    There is no such thing as “inventory” on a time/space/contextual paradigm network such as the Internet. Social networks done nothing but defined the reality of Internet-based marketing which is not about CPM.

    CPM was transferred out of the traditional world and I would love to meet the “premium pub” person who actually want to complain their old way of thinking is being hurt by natural evolution…

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  3. Sequential interdependence, which is linear like a supply chain or assembly line. One unit in the chain produces something necessary for the next unit, and so forth.

    Facebook users produce nothing necessary. Hit the panic button and nobody loses or cares. All the information just finds a new route to maintain situational awareness. All the virtual currency quits working. Stockpile cash.

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  4. contentnext Monday, July 12, 2010

    Strange thoughts typed strangely
    Large words used but not needed
    66 again…

    A little Haiku for you. Just for fun. :)

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  5. The premium pub is out of beer. That’s a bigger crisis.

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