Report: ‘Surprising’ Weakness in Web Monetization

A little grist for the ‘Is bigger better?’ mill. A new report by PubMatic AdPrice Index showing that large Web sites in the last few months have fared the worst in monetization while smaller Web sites have managed to maintain their monetization rates.

A front page story in Wednesday’s Wall Street Journal says that several economists are reevaluating their predictions for a recession, but the PubMatic report suggests that the economic slowdown is starting to take a toll on Web ad spending. Chock-full of interesting nuggets, the PubMatic AdPrice Index is based on anonymous data from more than 3,000 publishers.

A related development may further dampen expectations on social networking. Internet research company eMarketer has lowered its projections for ad spending on U.S. social networks. Pointing the finger partly at a paltry economy, the report also stresses that building social networks has turned out to be easier said then done.

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Matthew Schwartz is Senior Editor of ScribeMedia.org and host of the WebTV series, From Print to Digital.

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