Metrics: Trouble in Online Adland

PubMatic, a Palo Alto, Calif.-based startup focused on online advertising, just released its PubMatic AdPrice Index based on data from over 3,000 publishers and billions of ad impressions. The findings of this month’s report: The U.S. economic slowdown is beginning to impact online advertising in a big way, with overall monetization dropping by 23 percent — 38 cents eCPM in March vs. 49 cents eCPM in March. Not a big surprise since housing related advertising was big on the web. Even electronics retailers are feeling the pinch and cutting back.

  • eCPMs for large web sites (more than 100 million page views per month) dropped dramatically by 52 percent from 38 cents in March to 18 cents in April 2008.
  • Medium web sites (1 million to 100 million page views per month) were nearly flat, with monetization dropping from 34 cents in March to 33 cents in April.
  • Small web sites managed to improve their monetization, increasing from $1.17 in March to $1.29 in April.

The overall trends you pick up from the report are not that surprising. For instance, the improved monetization of small web sites is because they have more focused content, which presents more targeted advertising opportunity. Again, no surprise that Social Networking led the plunge, with monetization dropping 47 percent to 19 cents in April from 37 cents in March, below January lows of 22 cents. Too much damn inventory. You can get the full report here.