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Online growth slows; Ads drop

26 May 2009

Huge cuts in advertising budgets will lead to a fall in growth in the $460 million online display advertising market, with publishers reportedly slashing rates with Fairfax leading the way with aggressive tactics to lure advertisers.

Last week, Fairfax unveiled its “Advertising Stimulus Package” which had discounted full-page over-the-page ads from $90 000 per day to $40 000 – a 55 per cent reduction, while the price of a standard sized medium rectangle daily buyout on the business pages has been cut by more than half from $34 000 to $15 000.

CEO of Fairfax Digital Jack Mathews, quoted in The Australian, said the company was “discounting less than anyone.”

“Everybody is doing the deals they need to do.

“Across integrated content and video, we haven’t seen (ad rates) drop at all.”

Matthews also said he was expecting to see more advertorial formats and branded or sponsored content as publishers look for different ways to attract advertisers which is in line with US online revenue trends.



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