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