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Online Ad Rates-Cutting Costs in Australia

Kinda confusing story, but turns out in Australia, major online publishers have slashed their advertising rates by up to 60 per cent on vast blocks of inventory as a string of offshore “affiliate” advertising networks and local start-ups woo advertisers with new, low-cost online advertising space, says this story.
At least a dozen online ad networks have emerged there in the past 12 months, offering new online inventory to buyers and putting margin pressure on the major publishers.

Dec 2, 2006 12:34 PM ET

Posted In: Advertising, Countries, Australia & New Zealand

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Dec 2, 2006 5:39 PM

I’m not sure if there’s been a full dozen new networks pop up over the last 12 months, but there’s definitely been some new entrants.

What gets more confusing though is a few of the major online publishers have at least been claiming that they’re getting closer and closer to selling out almost ALL of their inventory consistently. I guess that’s because they’re doing so after droppin the rates, to save losing money to the new networks.

pascoe

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