So for many right now there is this opinion that advertising revenue is dropping quickly, some are saying as high as around fifteen percent per quarter, or around five percent a month. To me, that seems relatively extreme, but there is a simple reason behind this: many small companies had to pull back on their advertising budgets, and larger companies don’t trust web metrics for helping calculate ROI.

While I hate the term “return on investment” when it comes to web marketing, I can definitely understand why companies don’t really trust web metrics. b5media had to change the software they were using, and in doing so found out that the numbers they were previously getting were way off base, and not a realistic view of what was actually happening on their blogs.

For companies spending money on advertisements on a CPM basis, not having the “right” numbers can create waste.

But what I don’t understand is why certain advertisers are dropping out faster than others? Have you seen a drop in your advertising revenue, or is it still rising? Are certain niches outside the sphere of influence that the market is having?

For me, it looks as though advertising dollars have stalled. They aren’t declining, nor are they rising. Are you noticing the same thing? Let me know in the comments below. The more information we all share, the better prepared we might be for whatever comes next.

Originally posted on April 14, 2011 @ 1:32 pm