Display Ads: CPMs Will Rise 76% in the Next Five Years, but Overall Growth Will Be Sluggish
According to an estimate from Forrester, CPMs will increase 76 percent during the next five years, from $2.66 in 2012 to $4.68 in 2017. “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.” This will mean fewer impressions for many publishers, which might offset some of the CPM gains. Forrester forecasts rates for digital advertising purchased and sold via real-time exchanges will grow faster, more than doubling from where they are today to $6.64 in 2017. The company is reining back its five-year forecast of overall display advertising by 13 percent, citing a shift of dollars from portal ads to ads on social networks, which are cheaper. (AdAge.com)
