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PubMatic, an advertising technology company in California that runs an online price-index revealed that the prices paid for online ads bought through ad networks dropped 23 percent from March to April. It is discovered that while search advertising remains strong, there are signs that the growth in online advertising particularly in more elaborate display ads is slowing down. Till recent times, web publishers have made big money from booming online advertising revenues.
Big web publishers fared the worst in PubMatic’s study, with the prices they received through networks dropping 52 percent. These are only preliminary results and the economy can make turn around any time, but still this is a cause of worry for web portals, newspaper publishers and news media companies, which look forward to expand their revenues from high-priced display advertising. One area however which remains strong are search ads. These are considered cheap and effective among marketers and it owing to the search ads that Google earns the majority of its revenue.
