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Big Web Video Ad Buy May Bring About New Ad Pricing Formulas

September 7, 2009: 04:50 AM EST
The embryonic online video marketing industry thought it was getting a big shot in the arm at a critical economic time when Reckitt Benckiser announced it would invest $20 million in Web video advertising. But the enthusiasm waned quickly when the company insisted on paying a viewer CPM as low as $1. Video ad networks and publishers backed away from the deal, but it was eventually accepted by four ad network start-ups. RB seems pleased with the results so far. Video sites, meanwhile, are left wondering whether a new video ad pricing paradigm has been born.
Michael Learmonth, "Kill or Cure: How Reckitt's Big Buy Rocked Online Ads", Advertising Age, September 07, 2009, © Crain Communications
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