Internet Advertising

Advertising

• "The average cost to reach 1,000 people with an online display ad fell to about $11.50 at the end of 2011 from $13.35 in late 2009, according to SQAD Inc., which tracks negotiated ad deals. In July 1998, Yahoo was getting about $25 per thousand, according to The Wall Street Journal." Globe and Mail
• "advertisers pay an average of $23.54 to reach 1,000 viewers in that age bracket, versus $9.57 per 1,000 over the age of 35.", NY Times Magazine, Oct. 13, 2002.
• 'Pop-Under" Ads click off web surfers, Fox News, July 6, 2001.

  In 2000, he said, the price was somewhere around $85. In 2001, it's been about $1 or $1.50.

• Free Rides Now Passé on Information Highway (NY Times, May 1, 2001)

  Mr. Talbot says he thinks Salon will take in $2.50 per free user a year from ads, perhaps more if the company's moves to increase the size and intrusiveness of its advertising catch on.

• Advertising: Marketers Find Internet Opens New Avenues to Customers (NY Times, March 26, 2001)
• Red Face for the Internet's Blue Chip (NY Times, March 11, 2001)

  A banner is nothing more than a highway billboard, a reminder message," said Richard V. Hopple, a former ad agency executive and now chief executive of Unicast, an advertising technology firm. "We know what outdoor is worth: $2 per thousand." By contrast, prime-time television advertising sells for $17 per thousand audience members, according to The Myers Report. Yahoo recently dropped its list price for general banner ads from $16 to $8 per thousand impressions, although ads in certain high-demand places can go for as much as $80 a thousand.

• Making Ad Banners Suck Less, Feb. 2001
• The State of the Internet", on Internet advertising models (Jan. 2001)
• "We Now Interrupt Your Browsing for This Commercial Message", NY Times, Dec. 18, 2000

  Unicast licenses its technology to Web publishers and advertising networks for a fee of $5 for each thousand advertisements that run. Publishers and advertising networks then sell the opportunity to advertisers for $35 to $90 for a thousand advertisements. ... According to Ms. Shaw of Unicast, more than 12 percent of the viewers who saw the sheep advertisement clicked on it - much higher than the industry average of less than 1 percent for standard banner advertisements. On average, Ms. Shaw said, click-through rates for superstitials are about 6 percent.

• What is banner advertising?: explains CPM, click-through, costs and placement issues
• FastInfo: agreements on ad placement, size, measurement (redirection)
• Media Metrix: top-50 web pages and sites
• Yahoo gets 780 million page views per day
• "Internet research firm Jupiter Communications expects banner ads to represent $4.4 billion a year in Web advertising revenue. ... Click rate is now about half the level of 1.35 percent that surveys measured a year ago, meaning people on average now click on a particular ad fewer than once in 100 viewings." NYT, June 7, 1999
• "[A]dvertisers spend an estimated $100 billion plugging goods and services to America's 100 million households. ... [T]he New York Times--which makes you give demographic information in order to register for the site--charges four cents for a banner ad that's shown to everyone and six cents for one that is targeted." Slate, April 16, 1999
• "The cost of placing banner ads on Web sites is finally falling, with the average price per 1,000 online "impressions" down 5.6% in December 1998 from a year earlier. Meanwhile, the click-through rate (the percentage of viewers who actually click on a banner ad to find out more information) is down as well. According to the CEO at Agency.com, the current rate is 0.5%, down from 1% a year ago and 2.5% two years ago." (Wall Street Journal 24 Feb 99, Edupage)
• According to a report released last month by Coopers & Lybrand, Internet ad revenues totaled $351.3 million for the first quarter of 1998 -- $222 million more than in the first quarter of 1997 -- putting the medium on track to break the $1 billion mark for the first time. (By comparison, newspapers sold $41.2 billion in ads last year, while broadcast television sold $37.1 billion.) NYT, 07/26/98
• Web advertising terms
• $275 million spent in 1996 seems considerable, it was still an insignificant portion of the estimated $173 billion spent on advertising in the United States last year. NYT (shows top ten advertisers and sites)

Advertising Rates

• Despite a premium pricing of $75 CPM, or cost per thousand, ZDNet expects the extramercials [sidebar] to be popular among advertisers who have been dissatisfied with the limited opportunity to present information in banner ads, which usually require users to leave the site to learn more about the ad.

  The current average price of Internet advertising is about $36 CPM.

  Reuters, 11/11/98

• The Company's standard rates for banner advertising currently range from approximately $6.00 per thousand impressions for run of network to approximately $90.00 per thousand impressions for highly targeted audiences and properties.

  (Yahoo 1998 annual report)
• Advertising rates (NYT 04/08/96): $5.50/1000 viewers for TV, $3.00/1000 viewers for cable
• Web advertisers charge closer to $25 per thousand impressions. (NYT, 04/25/97)

Last updated by Henning Schulzrinne