The dog days of summer are normally the slowest time of the year when it comes to the advertising business.
Companies are gearing up creatively to unleash their ad budgets later in the year for the period between Black Friday and Christmas.
But the latest reports from the digital advertising sector indicate a sharp rise in both advertising rates and revenues is happening just as the summer gets underway, giving a boost to behemoths such as Facebook and Google and much smaller outfits down the food chain.
Digital advertising had already experienced yet another record-breaking year in 2017, with revenue hitting $88 billion, growing 21 percent and surpassing television advertising ($70 billion) for the first time, according to the Interactive Advertising Bureau.
The latest news from the Ezoic Ad Revenue Index, which captures data from throughout the sector, is even more encouraging for digital publishing entrepreneurs.
According to Ezoic, a San Diego-based digital media intelligence provider, internet ad rates were already hitting record highs in May and ended Q2 at their highest level ever.
“Everybody probably predicted that ad rates would go up again this year,“ says Tyler Bishop, Ezoic’s marketing chief. “But what we’re seeing is much more dramatic than what was expected,” with both CPM (cost per thousand impressions) readings and actual revenues hitting all-time highs.
“Traditionally, ad rates hit their highs [over the holidays] and take a huge drop in January. The only time last year our index set a record was on Black Friday,“ he says. “This is not what we would have expected for the dog days of summer.”
Bishop adds that he expects a short dip for the current quarter but sees the rest of the year to bring more good news to digital publishers.
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