Digital Advertising Rates Are Down by 30%, IAC Says

ERIC J. SAVITZ | April 7, 2020

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It turns out that the digital advertising industry has two problems. The one you’ve probably heard more about is simply loss of budgets. With large segments of the U.S. economy basically shut down, there is little reason for airlines, hoteliers, casinos, retailers, auto makers, film studios, or restaurants to advertise at the same pace. And small businesses are more focused on meeting payroll and staying alive than on advertising and marketing. But there is a related and logical, if slightly less obvious issue, in particular in the digital advertising market: Ad rates are falling hard. It isn’t just that there are fewer ads—the remaining ones are generating less revenue.

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