COVID-19 REVENUE IMPACT|CPM
Written by Colm Dolan
5 Apr, 2020
I hope you and your family continue to stay safe and well.
April is notoriously a bad month for advertising. We often see dips similar enough to the January drop off. I do expect it to be a very tough start to the quarter. It will also take some time for advertisers to transition to the new way of buying and advertising dollars may not be seen until May/June.
See the graphs below showing the Year on Year cpm drop in 3 of the top global markets in addition to Italy which is a good benchmark.
It is very encouraging to see the decline in cpm prices in Italy has not increased YoY. With people transitioning to working from home, businesses will still need to connect to customers. Many of these will now have to change their business model to take advantage of the online consumer. With this in mind – businesses will need to quickly create more efficient websites, analyse/track users & set up online advertising campaigns.
Information from demand parters is that more revenue is now pouring into the Open Auction – this is the more automated way to purchase ad inventory for advertisers. Agencies seem to prefer this channel as opposed to the old way of setting up programmatic deals.
During this time it may be a good opportunity to work on improving website functionality. We are going to actively look into your website and see what could be worthwhile, eg. mobile optimization for instance. Can you ensure to add email@example.com access to your Analytics account so the team can look into this for you.
In addition, we are in the process of negotiating some improved rates with ad partners which should see more revenue go directly to you. We will continue to do this. We may also need to remove some partners who do not adhere to our strict guidelines on payment terms.
I am personally very thankful that we are in the online advertising ecosystem. People are staying indoors so must consume advertising online. TV is still expensive and only a very small % of advertisers can build creative for this medium. Traditional media such as print & outdoor will really feel the pinch. It is really about weathering the storm and coming out stronger the other end.
Again, I’m happy to discuss any of this in more detail. Feel free to book a call in with me using the link here.
Colm Dolan, CEO Publift
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