New TB.HU index launched, euro conversion of inventory completed
EURADEX (www.euradex.net) this week introduced a new price benchmark for the Hungarian digital media market, the TB.HU index. The new index represents the ask price of time-based advertising inventory from publishers in the EURADEX system in terms of cost-per-thousand (CPM), and allows both publishers and advertisers to better understand market expectations relating to what is still the most common method for pricing online advertising in Hungary.
At the same time, the converting of publisher accounts transferred from the former Webreklám system to EURADEX has been completed, with all pricing in the EURADEX system now denominated in euros.
The new TB.HU index joins EURADEX’s two existing indices, the AV.HU and CT.HU, which measure publishers’ pricing expectation for offerings priced by CPM (or “adview”) and CT (click-through). They can be viewed on the public site’s Market Data page.
“What we are seeing is that there is a big gap between what publishers want for CPM-based sales as opposed to time-based sales, but this seems to be coming down as publishers become more accustomed to CPM-based pricing,” said László Gulyás, EURADEX director of business development.
As of November 11, the AV.HU index was at 8.70, representing €8.70, while the TB.HU index stood at 1.96, or less than 25% of the former. Currently, both indices are weighted by the number of monthly page impressions of sites in each index “basket,” meaning that they magnify the importance of websites with large numbers of monthly page views.
According to Gulyás, large variations in prices across the three kinds of pricing methods - and among publishers of similar sites - suggest that many online publishers in Hungary remain unclear about basic pricing issues.
“It is not just that some remain stuck on ultra-high ‘list prices’ while others are willing to offer similar inventory for prices obviously aimed at making sales,” said Gulyás. “For example, we see some offerings in which the equivalent CPM prices for time-based offerings are higher than for the CPM price for the same adzone. This is like charging less for a single hamburger than for a month’s worth of burgers - it doesn’t make sense.”
Meanwhile, EURADEX director of operations Norbert Németh said that the conversion to euro-pricing drew a mostly positive response from publishers. “Some said they found it hard to think in terms of euros, but at the same time they said they were happy to have a reason to begin making the ‘mental’ conversion.”
Publishers previously registered with the former Webreklám system were able to convert their prices from forints to euros until November 1, after which the remaining inventory was converted at a “terminal rate” of Ft 272.5/€.
Currently, many analysts expect Hungary to be the next member of the “first wave” of countries admitted to the European Union in 2004 to adopt the single currency.
About EURADEX
EURADEX is a new pan-European broker of digital media and related services, and a news and data provider. It provides publishers throughout the continent the ability to list and optimize non-remnant “premium” advertising inventory, and allows advertisers to conduct targeted and customized campaigns across borders while budgeting in euros. EURADEX is a service of Szép Dolgok (Fine Things) Media, a Hungarian-registered limited liability company based in Budapest, and can be found on the web at www.euradex.net.
New, existing or potential users requring assistance can contact EURADEX office via euradex AT euradex DOT net, or on +36 (1) 266-72-57.