Brad Feld

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What Happens To CPM’s When The Economy Turns Down?

Nov 04, 2007
Category Technology

Here’s the start of the conversation:

Nerd 1: “Man – those Facebook ads really suck.  They are completely irrelevant.  And – well – embarrassing (e.g. almost porn.)”  I can’t imagine that they ever get clicked on (except the porn.)”

Nerd 2: “Yeah, but it doesn’t matter.  It’s all CPM based so all that matters right now are page views.” 

Nerd 3: (also co-founder of a generation one search engine): “Yeah – that worked really well the last time around – until the economy went south.  Then – CPM rates became asymptotic with zero.”

It went on for a while (along with additional sushi and saki consumption.)  It was interesting.  And important.  And chilling for anyone relying on CPM-based ads only.  Maybe it’ll be different this time.  But that’s what “they” said the last time.  Don’t forget to be sitting in a chair when the music stops playing.