NYT: Ad Costs on the Web Are Rising

Posted on December 26, 2006
Filed Under Online business, web 2.0 news |

As the NYTimes reports: MEDIA executives and investors get a pleasant neck ache from watching the skyward path of online advertising revenues. But for those who have to pay for advertising, the trend is bringing some anxiety.

Prices for some online advertising are going up, and some retailers and brand marketers say the big question mark hanging over 2007 is whether publishers will be so emboldened by a strong advertising market that they will raise the prices of ads sharply.




“Everybody’s excited about online advertising,” said Mark Vadon, chief executive of the online jeweler Blue Nile. “But the rates keep going up and up and up.”

Joanne Bradford, MSN’s corporate vice president and chief media officer, would not specify the extent to which her site will raise prices next year, but she said that during the last two years “there’s been unbelievable price pressure.”

For instance, Ms. Bradford said that for the front pages of some popular MSN sections, prices rose tenfold. “That settled down quite a bit, and now we’re starting to see price pressure more evenly spread across the network,” she said.

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