The use of advertising networks increased six-fold between 2006 and 2007, new figures show.

The Digital Pricing Benchmark Study, conducted by Interactive Advertising Bureau in conjunction with consultancy firm Bain & Co, shows that the use of ad networks rose from five per cent of all ads in 2006, to 30 per cent in 2007.

Online publisher revenue grew by 32 per cent between 2006 and 2007, while revenue from ad networks grew by more than 50 per cent within the same period.

The study also found that the cost-per-thousand rate for premium video inventory is two to three times that of standard display ads.

John Frelinghuysen, partner in Bain’s global media practice an author or the report, said: “Online publishers are producing more inventory than the market demands and risk devaluing the premium nature of their brands, particularly in light of ad networks growth and their dramatically lower pricing.”
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