Why net ad rates are undervalued

A commentor asks why I think this and what about the massive increase in inventory reducing prices.

While I do agree in the short term there are reasons to see a dip in cpms like the huge increase in community page views which are less attractive to advertisers, I believe at a macro level there is still an imbalance between the price for net attention vs other media types.

Newspapers at 50 dollar cpm’s are over priced and likely only keeping advertisers because they are the only consolidated local media. Or said differently probably face massive downward pressure as net alternatives for local attention emerge.

People say craigslist has wiped out value in the classifieds and this is only partly true as most of these listings would never have existed in a paid space.

I also believe that all forms of measurable media will sell at a premium long term as it will enable marketers to be more scientific and give them a revenue generating role in the corporation. Besides, every newly minted mba wants to buy internet, especially if they’re the new asst PM for colgate toothpaste.

If anyone has more specific research on media ad rates, I’d love to see it. Sent wirelessly via BlackBerry from T-Mobile.

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