Mohamed Ibrahim’s Blog

That’s an updated chart compared to last month’s. Bad news is, the slump is going deeper. This chart measures the relative absorption to a year earlier, which is basically the demand in the market versus the offered units for sale. The updated chart shows that the ratio of closed settlements is even less than last month, when compared to a year earlier. It looks like there’s a lot of indicators showing contradicting markets. Some show that the market is about to bounce back, or at least their analysts hopes. Others show that the market is not bouncing at all, worse, it is going in a deeper hole. We’ll keep watching!

Lately, I’ve been thinking about whether mixing text and image ads is really profitable. The case that most advertising companies (like Google adsense, adbrite and lots of others) make is that allowing image ads in the same ad unit as text ads is usually better because they compete in price with text ads. But, my understanding is that image ads will only show if they beat the highest text ad price. I tried to analyze and see whether the final profit will be larger in case of mixed ads or not and I found conditions for image ads to make more money if allowed to compete against text ads in the same ad unit.
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