Articles of the Day


Online Display Ad Prices Fall To Lowest Point This Year — Online display ad prices, which have been trending downward for the past year, hit their lowest point in the third quarter of 2008, just as the U.S. economic crisis began to unfold. The findings, which come from online publishing service provider PubMatic, found that the average display ad page generated a CPM of just 27 cents during the third quarter, down five cents from the second quarter of 2008, and down 23 cents (or 46%) from the fourth quarter of 2007, the first quarter for which PubMatic began tracking online display advertising costs.

J.P. Morgan Hammers AOL Revenue Forecast — To reflect slowing growth in the third-party and display ad business, J.P. Morgan has reduced its ad revenue forecast for AOL for the remainder of this year and next year. The report’s author, J.P. Morgan analyst Imran Khan, also plans to raise the bank’s estimate for cost of revenue “to incorporate our expectation of growing traffic acquisition costs.” “Our new Adjusted (Operating Income Before Depreciation and Amortization) estimate of $1.43 billion, 11% below our previous number, drives a 3c reduction in 2009 EPS to $1.13,” Khan writes in the report. “We now expect AOL advertising revenue of $2.4 billion in 2009, an increase of 8% year-over-year–compared to our previous estimate of a 12% improvement.”

Synacor Withdraws It IPO, Citing Market Conditions — Not that this is a surprise, but Synacor, the online content and application provider to the ISPs has withdrawn its IPO due to “current market conditions.” People had been asking the question about the company for a while now…it filed its S-1 in August last year, and planned to raise around $86.25 million, and not much was heard about it since then. The full SEC filing withdrawing its IPO is here. “In light of current market conditions, the Registrant has determined not to proceed at this time with the public offering..the Registrant hereby informs the Staff that it may undertake a subsequent private offering in reliance on the safe harbor set forth in Rule 155(c) promulgated under the Act.”

Online Ad Spend Estimated To Grow 13.8 Percent In ‘08; ‘09 Looks Flat: Jack Myers — Veteran media analyst Jack Myers has come in with his ad forecast for this year and next and the good news is, it could be worse. Myers projects online ad spend growth of 13.8 percent this year with $24.133 billion. But in 2009, Myers expects online’s growth rate to come in essentially flat at 13.5 percent, with $27.6 billion spent. Online’s share of the total media ad spend pie will be 10.4 percent, and will rise to 12.4 percent in ‘09. That’s not a leap by any stretch, but since Myers anticipates total ad expenditures to fall 1.3 percent in ‘08 and then drop another 4 percent next year, it’s hard for the industry to feel too badly. Come 2010, online will look a bit better with gains of 16 percent, as it assumes a 14 percent share of the whole ad market, Myers says.

Meredith Goes Outside Titles To Launch Food Social Net — Another day, another social network launching online. But this one is different–at least for Meredith Corp., owner of titles such as Better Homes and Gardens and Parents. The site, MixingBowl.com, represents the company’s first attempt to launch a content site that focuses on a topic–in this case food–but is not associated with any existing print title. The site, slated for a November launch, provides a place for cooking enthusiasts to share recipes and thoughts on food. It will also allow marketers to “get closer to consumers” by starting their own groups, essentially becoming just another user.

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