Social Networks’ Cheap Ads Affecting Web Publishers

Social networks like Facebook and MySpace account for more than one-fifth of all U.S. advertising traffic, but are bringing in the lowest rates for their ads, AdAge reported. What do they expect when there is no geographical focus?

In fact, the publication reported that the networks may have dragged down the average online CPM by as much as 18% over the past year. According to comScore, Facebook and MySpace have drawn an average CPM of 56 cents over the last year — compared to the $2.43 seen on non-social network sites.

The report further explains that the Social networks are going to be a challenge for everybody, as the sheer dominance of the impressions they’re making flood the marketplace with inventory.

Speaking of Social networking, I can’t wait for the movie to be released in October 2010:

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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and that I founded in 1999. I am currently the founder and awesomizer @

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