Web Awash in Ads as Supply Outstrips Demand

Lesson 1: U.S. ad impressions hit 1.3 trillion in the third quarter, a 22 percent increase from a year earlier, according to comScore.

The increase is a good news-bad news scenario. People are clearly spending more time online, but publishers are locked in an unsustainable arms race to eke out profitable businesses.

With display ad rates pitifully low compared to offline prices, many publishers have turned to more ads.