Posted Nov 3, 2008

Rubicon’s recently released online advertising report shows that Internet ad growth is starting to slow down.

Here is an excerpt from the report:

Sample Findings:

Newspapers are struggling with sales and circulation numbers offline, but recent deals they?ve brokered with ad networks and other web-based properties have started to net positive results;

News & Reference site CPMs outperformed other verticals with an across-the-board CPM increase of 36 percent over Q2 ? only Food & Drink sites garnered higher absolute prices during Q3;

Social Networking sites (and other channels like Young Adults, Music and Entertainment) struggle to match inventory with demand. Already-low CPMs in the Social Networking channel slipped 3 percent in Q3. With more than 150 million consumers spending time on social networking sites, however, advertisers will continue to spend to reach this audience, driving overall revenue upward;

Network performance in Q3 varied by type ? behavioral networks, while still delivering the highest CPMs across all networks, were slightly down, while all-purpose networks saw marked pricing lifts;

Average CPMs served across thousands of sites and 270 ad networks slipped 11 percent from Q2, but performance varied by network type and channel. Several channels experienced greater than 25 percent lift in CPMs from Q2, while others dropped by almost 20 percent. This fluctuation among verticals appears little different from past quarters? analysis

You can download the full report here.