Premium Content CPM Rises, Lower Engagement Prices Wane

Performance CPM RisesAdvertising rates vary greatly between the New York Times and local, rural newspapers. Increasingly we are seeing the same phenomenon occur online. Premium content CPM rates are increasing, while the more plentiful, less engaging content is seeing its rates go lower.

Overall, rates are flat, according to a new eMarketer report, “Desktop Display CPMs 2014: Rising at the Top, Falling at the Bottom, Squeezed in the Middle.” All CPM inventory has moved in a small range over the last few years, especially for standard banner and rich media ads. This holds for ads purchased directly or via ad networks.

However, when specific data is reviewed more carefully, rates are anything but stable. A growing gap is occurring, especially for nonbanner ads including video and other rich media formats.

If you make a living from your sites, there are two clear takeaways:

First, migrate your ads as quickly as possible to video or rich-media, both of which continually are tested to be more engaging than banners to your readers.

Second, hone your message and content to get greater reader involvement. As we saw with The Financial Times, engagement by the reader drives the value of the content significantly.

These will both help you address the growing preference from buyers to view performance as greater than solely the cost of the ad.

But that’s not the only influence widening the cost divide. The impending move toward a viewable CPM is also driving up prices on the high end and devaluing lesser-quality inventory—much of which is presently considered nonviewable. Ads procured through programmatic channels should see a rise in price if it is paired with audience targeting data, which improves performance.

 

But that’s not the only influence widening the cost divide. The impending move toward a viewable CPM is also driving up prices on the high end and devaluing lesser-quality inventory—much of which is presently considered nonviewable. Ads procured through programmatic channels should see a rise in price if it is paired with audience targeting data, which improves performance.


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