CPC vs CPM advertising in a worsening market

By Jason Menayan February 4th, 2009

Internet publishing giant IAC sounded a dismal tone in yesterday’s earnings call, when chief Barry Diller shared the following about IAC’s properties’ online ad revenue picture:

  • CPC (think AdSense and the like) took a 8-12% hit.
  • CPM (display) projected to drop 50% in the month

Both of these figures are considerably less rosy than the general market projections made by eMarketer just a few months ago, but given the size and breadth of IAC’s online holdings, it’s not unreasonable to expect their figures as a bellwether for the entire market. HubPages, which primarily monetizes via CPC, has taken a very similar hit, as well, over the past month or so.

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This entry was posted on Wednesday, February 4th, 2009 at 1:04 pm and is filed under Online Advertising. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “CPC vs CPM advertising in a worsening market”

  1. Paul Edmondson Says:
    February 4th, 2009 at 1:29 pm

    AOLs q408 earnings had ad revenues down 18% for display and were forecasting weakness for Q1 of about 20% down as well.

  2. Jason Menayan Says:
    February 4th, 2009 at 2:35 pm

    Sounds like AOL is incredibly optimistic.

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