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Why Online Ads Are Getting Ever Cheaper

May 14, 2008
by Owen Thomas
Managing Editor, Valleywag

Owen Thomas

Prices in the online advertising’s world bargain bin are cratering. PubMatic, a consultancy which helps Web-site owners shop for the highest-paying ads, says that average rates for its largest publishers have dropped from $0.38 per thousand page views to $0.18. Some fret that this is the sign of an economic slowdown. I doubt it. More likely, it’s a reflection of the glut of inventory available, and the failure of an ad-selling business model.

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