One advertiser causing all the eCPM drop in Microsoft pubCenter ???
With the free wp7 games being the preferred choice with users many developers have gone with the free model for their games and were doing quite well with ads from Microsoft pubCenter. Its only available for publishes in the US and many devs who happen to be from the US were making a decent secondary income from it. One developer mechaghost a.k.a Elbert Perez who has 9 free games even plans to quit his day job to be a full time WP7 developer.
But recently a few devs have noticed that the eCPM’s have been going down. In an forum thread about the issue a Microsoft Employee was quick to respond saying they were on it. ( If any of you have used Google Adsense , you would know how difficult it it to get a reply from Google regarding any issue , I haven’t used Google AdMob and cant comment on it but I would not keep my hopes high. In Google defense it a much larger network that the Microsoft’s offering )
They have now come up with an official response
Beginning on March 18th, publishers may have noticed increased variability in their eCPMs on our Mobile Ad Exchange. Some publishers saw their eCPMs increase while other saw them decrease which is expected due to dynamic changes in supply and demand. During our initial analysis, no problems or issues were identified with the Microsoft Advertising Ad SDK for Windows Phone 7 or the Microsoft Advertising Exchange for Mobile. We did discover that a large advertising demand partner had changed its bidding strategy which in turn altered the dynamic bidding for selected ad units in our Mobile Ad Exchange.
Bidders are constantly evaluating their bidding strategies and periodically change their bidding to match expected ad unit volume and advertiser demand. We have reached out to this advertising demand partner to better understand their needs and are working with them to ensure they have what they need to best participate in the exchange. Should we become aware of significant changes to advertising demand partner bid strategies ahead of time, we will do our best to communicate with the forum in a timely fashion.
Your continued support and participation in our Mobile Advertising Exchange for Mobile and Windows Phone 7 is greatly appreciated.
From what I gather , the reason for the price drop is one rather large advertising partner had changed its bidding strategy ? Now that is a scary though for publishers , especially if you start to depend on this income as the primary source of revenue. Now I should mention that this according to Microsoft has also resulted in so publishers getting an higher eCPM rates ( If you have noticed this plz do let us know ) and Microsoft is working with this advertisers to better understand their needs and provide a better solution. In the meantime its a good thing there are new choice for developers like Google’s AdMob , Ad Duplex , Smaato and more.. and developers would not have to put all their eggs in to one basket.