New York Post: Downside to the online Ad Boom

While many a smile crosses the face of online marketers as the online ad market heads for recovery, some are instead frowning. Rising cost per clicks have resulted higher costs per acquisition for ediets.com, which recently saw its stock dip 16 percent following reported Q1 results that were actually inline with expectations, albeit, lowered ones.

Jupiter Research's Nate Elliot says, "Pay-per-click prices are going up, and that's driven in large part by the growth of the marketplace. It's a self-priced marketplace, and there are so many advertisers battling for position that demand is driving prices higher." Elliot thinks these rising costs could hurt smaller advertisers who, lately, have seen some success with lower online media costs.