Glut of Cheap Ad Space (According to Yahoo)

Is Rosenweig correct in his assumption that the market is changing back from a seller’s market to a buyer favored space? I don’t think we’ve hit that point in inventory just yet, but even in the CPA world, this market shift will definitely occur again. This would also supply more reason that Google and other large firms with a good deal of inventory are looking to the world of CPA in hopes of backing out into a favorable effective CPM.

According to Yahoo! COO Dan Rosensweig, a “glut” of cheap ad space was partly to blame for his company’s sagging third-quarter ad revenue, reports Adweek, by way of Yahoo News.
The increase in cheap ad space appears driven by the recent popularity of social networks like MySpace and YouTube. In September, MySpace drove more than 35.7 billion impressions according to Nielsen//NetRatings. Despite the boost in impressions, the metrics company reported that unique visitors to MySpace dropped 4 percent.

In the ad networks space, providers are reporting double-digit gains in ad inventory. According to comScore Media Metrix, ValueClick’s reach is up 11 percent in the past six months and BlueLithium’s 22 percent.

“This is going to change the market dynamics,” says Dan Rosensweig, Yahoo! Inc. COO.

iMedia Connection: A “Glut” of Cheap Ad Space?

technorati tags:yahoo, google, affiliate, adsense, advertising

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