![]() |
YoY ad pricing from Yahoo!'s 3Q2013 presentation |
What this means, in simpler terms, is that as long as the change in web/mobile traffic * the change in density of ads (ads displayed per user/visit/pageview, whatever) increases (S right) faster than the natural growth of advertising budgets * the change in share that web commands vs traditional (D right), the price of ads will fall. Judging by the double digit pageview growth rates and double digit revenue growth targets in most of these names, as well as addition of new entrants as more maturing services start monetizing, it looks a lot to me like advertising space, especially display ads, will see increasing price pressures down and, in my opinion, the market will segment into highly-targeted ads to a small sliver of the users that will command a high but shrinking premium, and the rest, which will be a margin-destroying race to the bottom. If you don't believe me, look at Yahoo!'s YoY change in ads price and ads sold and see if you can pinpoint when Facebook went public. Their price trends have deteriorated while their volume was improved, or rather their volume has improved because their prices have declined.
I think it's very likely that in the next 12 months we will find out what the price elasticity of demand for web advertising is and--particularly for display ads--I think it will be a lot more likely to surprise to the downside.
makes sense
ReplyDeleteInteresting write-up.
ReplyDeleteCould you clarify your data source? Is all of it from Yahoo or just display pricing?
I like your post. It is good to see you verbalize from the heart and clarity on this important subject can be easily observed... Classified site in Karachi
ReplyDeleteThere are a lot of blogs over the Internet. But I can surely say that your blog is amazing in all. It has all the qualities that a perfect blog should have. banderas publicitarias
ReplyDeleteI saw a lot of website but I believe this one has got something special in it in it take a look at the site here
ReplyDeleteAlways keep in mind that the whole purpose of engaging in viral advertising methods is to spread an idea, marketing services and that idea while it is spreading throughout the internet, actually helps market your niche business or product and is attached to your website.
ReplyDeleteThe article looks magnificent, but it would be beneficial if you can share more about the suchlike subjects in the future. Keep posting. comprar banderas
ReplyDelete게시물은 정말 훌륭합니다. 기본적이고 필요한 방법으로 구성되는 다양한 액세서리 정보입니다. 이 텍스트를 공유해 주셔서 감사합니다. 물질은 진정으로 구성되어 있습니다. 이 웹은 나를 위해 내 문서를 작성하여 유용한 실제 정보를 자주 공유합니다. 많은 게시물을 계속 공유하십시오. 먹튀안전업체
ReplyDeleteWales publishers are offering optimized, Best Publication Services in UK to boost the researcher and research communities, by providing accelerated and efficient services to fasten the publishing process and to give more opportunities for research on different disciplines.Wales publication research conferences give the researchers an international platform to discuss their scientific research Open Access Publishing UK work and their edges.We are different from other conferences because the community's member organizes our conferences.
ReplyDeleteThis feature gives the light in which we can observe the reality. I love to reading an article that can make somebody believe. Thanks a lot for sharing a piece of wonderful information which I am looking for a longer period of time 먹튀
ReplyDeleteIn the wake of perusing your article I was stunned. I realize that you clarify it exceptionally well. What's more, I trust that different perusers will likewise encounter how I feel in the wake of perusing your article braces in tijuana
ReplyDeleteWe are well established IT and outsourcing firm working in the market since 2013. We are providing training to the people ,
ReplyDeletelike- Web Design , Graphics Design , SEO, CPA Marketing & YouTube Marketing.Call us Now whatsapp: +(88) 01537587949
: SEO Service Company
good post Mobile XPRESS
Free bangla sex video:Delivery Companies in UK
good post Mobile XPRESS