Fol­low­ing the Effi­cient Fron­tier search CPC (cost per click) trends release last week, we are now shar­ing the Dis­play Exchange CPM (cost per thou­sand impres­sion) trends for Feb­ru­ary 2011.

Fig­ure 1: Dis­play Trends

In Feb­ru­ary 2011, MoM (month over month) and YoY (year over year) CPMs are down over­all that US adver­tis­ers are pay­ing as ever­more Direct Response adver­tis­ers max­i­mize their return on ad spend from the insights gained  from the Effi­cient Fron­tier plat­form, par­tic­u­larly across channels.

Across the 2 pri­mary dis­play ad exchanges, CPMs are down 19% MoM and 31% YoY.  While the CPM decline may be con­cern­ing for pub­lish­ers, over­all adver­tiser demand rose, as impres­sions increased 13% MoM and 273% YoY.  The key dri­ver for CPM declines appears to be a wider play for less expen­sive inventory.

We will closely mon­i­tor these trends against the Search CPC trends, as over time these should come more in line with one another as mar­keters con­tinue to have a strong pres­ence in all dig­i­tal markets.

Chris Jacob