According to figures released today by internet researchers Jupiter
MMXI, on-line advertising prices will continue to fall over the
next six months, giving buyers of advertising a stronger
negotiating position. The company said today that internet
advertising prices have experienced a dramatic 30% fall over the
past year.
According to its findings, advertisers paid €30 (£18) on average
for 1,000 page impressions in June 2000, while they now pay €20
(£12). Skilled agencies often even get better deals. Jupiter says
the reasons for the sharp decrease lie in a highly competitive
market where the supply of space on the numerous sites and sales
networks largely exceed the demand for on-line advertising.
Jupiter estimates that the surplus of unsold ad space is worth
between €60 million and €70 million every month (£36 million to £42
million). The majority of European publishers has over 60% of
unsold ad space. Moreover, a recent executive survey conducted by
Jupiter shows that 25% of traditional advertisers find the on-line
medium too expensive.
