Web publisher solutions provider Solbright released its initial findings from its new Digital Media Index™ (DMI) last week as the “premium” display advertising market rebounds in 2010. Among the data points, “Cost-per-thousand-impression (CPM) revenues in the first half of 2010 rose almost 9 percent from the same period in 2009, while pricing, after experiencing a recent decline, has stabilized.” Read the release. And, download the report (sign-up required).
Solbright CEO Tom Pace discussed the new research.
Given your prediction that this will be the strongest year ever for “premium” display, why do you think this will be the case?
It’s all in the numbers. The Digital Media Index makes it clear that Q2 2010 has been the strongest Q2 we have ever seen, and 2010 overall has also seen the best sequential growth in recent years. As far back as we have tracked this data, we have seen very strong seasonal trends. The first quarter of every year has traditionally been the weakest quarter, with revenue trending up significantly in the second and third quarters, and the fourth quarter coming in the strongest. These strong seasonal trends, taken together with record-breaking and accelerating revenue for the second quarter, portend a very strong overall year for the premium display market.
What is the biggest surprise for you in the data?
One of the biggest surprises for us was the recent strength of the newspaper sites. These sites, taken as a whole, had about a 30 percent revenue increase in Q2 over the same period last year. While there were some other segments that had even better performance, 30 percent is certainly respectable. This strength may be attributable to a growing advertiser preference for local reach.
What is the value proposition for your clients in having this data made available publicly?
Keep in mind that we are not reporting any organization’s specific data here, and that all reported information is aggregated from across our client base. Our clients represent the top premium publishers in the industry, so they see tremendous value in being able to compare their own pricing and revenue data against the rest of the market. The trends we’ve identified help these publishers set their own pricing and packages in a way that gives them a competitive advantage.
It’s also important to note that the data we’ve been made available for the public only scratches the surface of the trends the DMI can identify. While a significant amount of information will be included in our quarterly public reports, our clients have access to a broader and more detailed view of the DMI findings, and it’s our hope that the information we present will help them make decisions that will have a positive impact on their bottom lines.
By John Ebbert