Technology companies and agencies are reporting that CPMs are down for the past two months, although they’re currently creeping back up. The IAB is outside with survey data that seeks to measure the area of cost declines from a publisher standpoint.
By means of a sample of 173 publishers and”programmatic specialists” (SSPs, Ad Exchanges, Ad Networks), the report states that 62% of publishers have seen significantly or somewhat reduced CPMs at the face of advertising funding cuts and diminished pupil competition.
The survey data were collected between April 29 and May 11.
Programmatic less affected. Programmatic suppliers are less impacted overall, with a few even seeing rate increases, in comparison with publishers offering direct ad sales. Publishers have cut CPM prices in an effort to remain competitive and maintain revenue. Online news publishers may be one of the hardest hit.
The biggest CPM cost drops have happened in the group of”open internet display” advertisements, followed by mobile web marketing, which can be off 34% and 33%, respectively. By comparison media advertising is down by 18%. CPM prices on desktop are down 27%; they are off 28 percent on cellular phones. The station that has been most resistant to price declines (or resilient) is linked TV, according to the survey.
These publisher-respondents project a typical CPM earnings decrease of 16% for the entire year, compared to 2020 predictions that are initial. While the sample is small, it suggests that if there is ad revenue expansion in 2020, it will be in the single digits and’s undoubtedly directionally accurate.
Why we care. It makes sense that programmatic networks have observed fewer declines, as many advertisers essentially abandoned harder-to-measure new or awareness marketing and focused more narrowly about performance and lower funnel approaches. These reduced CPMs — which are starting to increase — represent a buying opportunity for marketers and brands now trying to re-engage or reactivate with prospects and customers.
As budgets begin to return in early Q3, the discounts might not survive that much longer.