Adify Vertical Gauge Report

Adify Vertical Gauge Report Q3 2009

Adify Vertical Gauge Q3 2009 Over 200 premium vertical ad networks are growing on the Adify Network Builder Platform. Since Adify serves advertising directly to the 16,900 sites in those networks, Adify can track and analyze CPM trends across verticals. The data in this report reflects all Adify verticals with at least 10 distinct advertising campaigns and 20 million sold impressions. This quarter’s report represents all brand campaigns that have been served by Adify’s technology, audited compliant with IAB ad measurement guidelines, since January 1, 2009. The data is analyzed quarterly as part of the Adify Vertical Gauge (AVG) report. $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $-

Q1 2009

Q2 2009

Q3 2009

Affluentials

$8.03

$7.71

$7.73

Automotive

$17.26

$15.33

$12.47

Beauty and Fashion

$4.30

$3.73

$3.22

Business

$6.01

$6.26

$5.68

Entertainment

$5.76

$6.53

$7.07

Healthy Living and Lifestyle

$14.36

$12.45

$10.19

Moms and Parents

$8.48

$7.90

$6.41

Real estate

$2.38

$6.49

$7.62

Sports

$4.94

$7.09

$5.48

News

$11.40

$10.50

$10.26

Food

$1.50

$3.63

$6.94

The Adify Vertical Gauge (AVG) - Premium CPMs Going to Vertical Inventory In Q3 2009, there has been major movement in average CPMs. The Food vertical has increased dramatically, Entertainment has increased steadily, and Real Estate CPMs have continued their upward trend. Both Automotive and Healthy Living and Lifestyle verticals have contracted substantially this past quarter. Across all verticals, the median CPM was $7.07 with a minimum of $3.22 and a maximum of $12.47. Food AVG – Q3 CPM Nearly Doubles From Last Quarter Q3 average CPM in the Food vertical was $6.94, representing a 91% increase from Q2’s CPM of $3.63. In addition to growing CPMs, the Adify Food vertical showed substantial growth in average daily visitors. This may be related to consumers looking online for recipes to accommodate shifting from dining out to eating in. The growth in CPM in this vertical aligns with offline trends showing increased interest in this category and growth in this demographic, including the rise in popularity of television shows such as Top Chef, Iron Chef, and No Reservations. Also, advertisers of grilling-related products appear to be willing to pay a premium for quality inventory on food oriented content during the summer months.

Adify Food Vertical Avg Daily Visitors (000) Comscore Media Trend Data

300

251

264

250 200

169

150 100

73

63

50 0 May

June

July

August

September

Entertainment AVG – Steady and Consistently Growing The Entertainment vertical’s average CPM was $7.07 in Q3 2009, which represents an 8% increase from the previous quarter. This is the fourth consecutive quarter where CPMs in this vertical have risen, indicating advertisers’ acknowledgement of the value of this inventory, and the increasing value of reaching this audience. In Q3 2009, the Entertainment vertical’s audience has been spending more time per visit on entertainment sites, and has also experienced an increase in their buying power index. Real Estate AVG – Continues its Upward Trend Though the Real Estate vertical was depressed in Q4 2008 and Q1 2009, CPM has been steadily recovering since Q2 2009. The Real Estate vertical climbed 17%, from $6.49 in Q2 to $7.62 in Q3, which matches US census data showing a steady increase in new houses sold since March 2009. This also coincides with this vertical’s audience spending more time per visit on real estate-focused sites, an increase in average daily visitors, and an increase in BPI.

New Home Sales (000) Us Department of Housing and Urban Development 500 450

400 350

426

429

July

August

400 329

354

371 332

345

300 250 200 150 100 50

January February March

April

May

June

Automotive AVG – Contraction Matching the Market The Auto vertical still commands high CPMs, with an average CPM of $12.47, though it has contracted from the previous two quarters. In addition to the general turmoil in the US auto market this year, other influencers include the cash for clunkers program. This program effectively shortened the sales cycle for buying a car, and narrowed the audience to people with older vehicles to trade in. As a result, it made sense for auto advertisers to pay a premium for search keywords to get at that demographic, and that may have had a negative impact on auto advertisers’ spend on display campaigns.

Source: Wall Street Journal

Internet Audience Spending More Time on Vertical Ad Network Sites Across the 200+ vertical ad networks that run on Adify, we have seen tremendous growth in the amount of time users spend on vertical ad network sites. From January of this 2009 to September, the number of pages viewed in Adify-powered vertical ad networks has nearly tripled. This trend is the result of more vertical ad networks adopting the Adify platform, existing vertical ad networks adding sites to their networks, and increases in traffic to sites within vertical ad networks.

Total Pages Viewed (MM) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

Comscore Media Trend Data 4,451 3,646

3,262 2,799

1,578

1,801

2,131

2,917

2,388

In addition, the increase in traffic to sites in vertical ad networks is the result of an increase in users who visit vertical ad network sites more frequently. On average, the percentage of unique visitors per month that visit an Adify powered vertical ad network in a given day has increased from 9% in January, up to 12% in September.

% Adify Audience Active per Day Comscore Media Trend Data 14% 12%

10% 8% 6% 4% 2% 0%

9%

9%

10% 8%

9%

10%

10%

11%

12%