General Display : Spend by Pricing Model

Does the recent IAB online advertising report start to clear the smoke and reveal what has really been happening to CPM display in Australia over the last few years?

Historical data is limited but if you look carefully at the latest IAB stats it can quickly be seen that non-CPM buys, eDMs and video have been masking the decline in traditional CPM display expenditure over the last few years.

Since 2006 “general display” has increased by $43m per quarter to $121m however non-CPM now represents 25% of general display and as performance display was limited back in 2006 it can be estimated that up to $30m of the $43m is due to the growth of non-CPM buys. If we also include the generally accepted significant growth in eDM and Video which represent $7.9m and $4.7m of the $121m then its possible that expenditure on traditional CPM banners has, at best grown, by a few % since 2006.

With the ongoing growth of performance buys, eDMs and Video ads the poor old traditional CPM banner is looking like becoming a rare beast. Applying some assumptions around the above numbers, traditional CPM banners only represent 17% of online advertising expenditure.

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