New York – Social networks like Facebook and MySpace account
for more than one-fifth of all U.S. advertising traffic, but are bringing in the
lowest rates for their ads, and may have dragged down the average online CPM by
as much as 18% over the past year, AdAge reported.
According to comScore data,
over the last year Facebook and MySpace have drawn an average CPM of 56 cents
— compared to the $2.43 seen on non-social network sites.
"Social
networks are going to be a challenge for everybody, as the sheer dominance of
the impressions they’re making flood the marketplace with inventory," Keith
Lorizio, Microsoft’s head of U.S. sales, told AdAge.
"And it’s especially
a challenge for every publisher, as they drive down CPMs."
Additionally,
eMarketer estimated that, while Facebook and MySpace account for over 20% of
all display advertising volume, they are generating less than 5% of total display ad
revenue.
Related Links:
http://adage.com/digital/article?article_id=144884
