As the new year approaches, a dip in ARPU awaits

With an estimated $209 billion spent on digital ads worldwide in 2017, advertisers have been shattering records when it comes to digital ad spend. In fact, 2017 marks a significant turning point: advertisers spent more on digital than on traditional TV for the first time ever this year.

Naturally, this higher ad spend has meant higher ad revenue earnings for publishers throughout the year. (Check out our recent post on November’s record-breaking Black Friday, for example.)

As we have observed in past years, however, after the 26th of December publishers should expect for their ARPU to drop. This is due to the fact that advertisers know shoppers are at their most active throughout November and December.

The graph below demonstrates the drop in ARPU that was observed by publishers last year.


This is a normal event, and publishers should not be concerned. Marfeel’s solution works to mitigate the effects of seasonality but this time of year is exceptional and publishers need to be patient: this dip will steadily climb through March, before publishers observe another fall around August before rising again as the year goes on. Publishers should continue their efforts as normal, regularly producing the content that their audiences adore.

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