Internet Advertising: After First Quarter Disaster, Industry May Throw In The Towel On Q2

Internet display advertising had what may have been the worst quarter in its history. In the first 90 days of this year, by most measures, the cost-per-thousand that large websites charged advertisers dropped at least 25% . Any site that did not have significant traffic growth lost a quarter of its sales compared to the same quarter last year.

For companies such as Yahoo! (YHOO), (TSCM), and IACI (IACI) the trend will be devastating to earnings. And, the worst may not be over.

Ads for which marketers pay very little, known in the industry as remnants, are still all over the top sites on the web. A recent ad at Yahoo! Finance markets a way to meet Russian women. Yahoo! Sports is running cheap ads for the “IQ Challenge.”  High-end political website runs ads for Barron’s on its home page. The revenue from these is based on the number of Barron’s subscriptions sold, which can be very low.

The second quarter is going to be a tough one for the big online publishers.

Douglas A. McIntyre

Sponsored: Want to Retire Early? Here’s a Great First Step

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.