26 September 2010

Digital Media Throws Down the Gaunlet to Traditional Media: Yahoo Vs. TV

AdWeek reports that "Yahoo's competition is television. That's what Yahoo CEO Carol Bartz said yesterday at the Goldman Sachs Communacopia Conference. 'The real competitor is TV,' she said, promising that online advertising will not only get more rich, interactive and accountable, but also simpler to purchase." She also discussed the future of online advertising.

Meanwhile another post in AdWeek shows a weakness in online advertising. Solbright Digital Media Index shows that the cost per thousand (CPM) page views (one of the ways Websites are paid by advertisers for display ads) "climbed 9 percent during the first six months of this year compared to the same period in 2009. [The second quarter] ...was particularly strong, as CPMs jumped 17 percent over last year. Even so, CPMs over time have consistently declined as the Web has become saturated with inventory, according to Solbright. Data presented to Mediaweek showed that while CPMs have spiked with regularity during each fourth quarter over the past four years, overall display CPMs have slipped from a $16 average in 2006 to a $10 average this year."

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