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A recent study by Comscore shows that social networks are leading the pack when it comes to advertising online, in terms of impressions and audience. However, there is another side to the story- ad rates are rock bottom. Facebook and MySpace last year had CPMs of around $0.56 cents, a pittance when compared to the average $2.43 rate for other online media, and a real steal considering that Facebook served 16.8% of impressions in all of the United States last May (MySpace had a “mere” 6.3%).
This trend, which has been known for some time, is causing concern in the world of online advertising. If social networks have an “unlimited” inventory and drop ad prices extremely low, what is left for the rest of the online universe? Nevertheless, social networks are only the tip of the iceberg: there is not enough advertising for the sheer number of media that exists out there.
We’ll simply have to hope that online ad investment continues to grow.