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Apr 7, 2008

STATS: Low eCPM for Remnant Ads

Pubmatic Data Suggests Small Sites Command Higher Rates For Remnant Ads Than Large Sites.

Online ad-optimizing service PubMatic is now publishing an AdPrice Index with the average rates collected for remnant ads by 3,000 Web publishers. These are the ads that sites place from the big ad networks when they cannot sell the inventory themselves at normally higher rates. Small sites (those with less than one million page views per month) command nearly three times as much per ad as large sites (those with more than 100 million page views per month): an effective CPM (cost per thousand) of $1.18 versus $0.38. The effective CPM across sites of all sizes is $0.49. All of these figures are for March, 2008. Ad rates are also growing faster for small sites, up 18 percent since January versus 12 percent growth overall.

The low average rates for large sites reflects the poor returns on social networks, entertainment, and gaming sites. Effective CPMs for social networks are amongthe lowest at $0.37 in March. But there is hope, that was up 69 percent from $0.22 in January.

LookSmart Announces Preliminary First Quarter 2008 Revenue Results

SAN FRANCISCO--(BUSINESS WIRE)--LookSmart, Ltd. (NASDAQ: LOOK), an online search advertising network and technology solutions company, today announced that, based on a preliminary evaluation of the first quarter of 2008, the Company expects to report total revenue of between $17.4 million and $17.7 million, which represents a 32% - 34% increase over first quarter 2007 revenue of $13.2 million ...
The revenue growth was largely driven by a growth in total paid clicks of approximately 62% year-over-year and 30% sequentially over the fourth quarter of 2007. The Companys Advertiser Network delivered total paid clicks of approximately 152 million in the first quarter of 2008. ...  $0.11 CPC.

Ed: Cat out of the hat. How can self publishing sustain at $1.00 eCPM?

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