Legal Equation of the Average CPM rate for Web Advertising,
CPMs will rise more than 75% over the next five years. But overall growth of the online display advertising market will grow more slowly than expected.
Web Advertising Average CPM — The rate advertisers pay for 1,000 impressions — will rise 76% to $4.68 by 2017 from $2.66 in 2012, according to a survey of 232 marketers conducted by the research firm. Forrester includes text advertising (which typically has a low CPM) in its display number, along with traditional banners, rich media and video.
That’s the good news. The bad news is that this CPM increase will be largely driven by adoption of the “viewable impression” standard, where advertisers pay only for ads that are visible on the screen. For a lot of publishers, this will mean fewer impressions, which could offset some of the CPM gains. Indeed Forrester’s estimate assumes a 17% compound annual growth rate in overall online ad revenue, down from the 20% it predicted last year.
“We’re definitely taking the stance that the viewable impression standard is going to happen,” said Joanna O’Connell, Forester analyst and co-author of the report.
RTB brings lift Rates for digital advertising,
Bought and sold through average exchanges will grow a bit faster, more than doubling to $6.64 in 2017 from $3.17 today in U.S, as more marketers embrace the efficiency of real-time bidding as they become more educated about the space, creating new demand in the process.
The average CPM including U.S (cost per thousand viewers of an advertisement) at $2.66 for an online banner ad. Nielsen puts the average CPM for a TV ad at $24.68.Online revenue growth, though, is expected to continue for the foreseeable future. The ad firm ZenithOptimedia recently predicted that online ads will represent 59 percent of the industry-wide revenue growth over the next three years and will approach a quarter of the market by 2015. Total ad spending, it said, will rise by about 15% in that time.
As a result of increased demand,
Total average online display advertising spend through CPM exchanges will hit about $8.3 billion in 2017 in the U.S. and make up about 30% of total display banner spending, compared with 16% this year, Forrester estimates.
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