Ad revenue to the moon!
CentralNic (AIM: CNIC) reported its unaudited Q1 results today. The company previews its results, and the actual results are essentially in line with what it said they would be in last month’s preview.
But the full release today includes more information, including this tasty number: the revenue per thousand (RPM) in its advertising business more than doubled from Q1 2021 to Q1 2022, from $48.00 to $98.20.
RPM is the inverse of CPM, the metric used to define how much advertisers pay per thousand impressions. This means advertisers are paying more and CentralNic is earning more for every 1,000 visits to its properties.
These properties have become more varied, but the main platform here is the domain parking platform ParkingCrew. And the main ad provider is Google, which made up nearly half of CentralNic’s revenue last year. That includes both the domains business and advertising, and almost all of that Google revenue is for ads.
It will be interesting to see how the ad business performs going forward. On the one hand, contextual ads are less impacted by privacy changes on iOS and in law. This sends more ad dollars to these platforms. On the other hand, the meteoric growth of the past two years might face headwinds as the economy changes.
CentralNic believes its full-year results will be in line with analyst forecasts.