Marketers still willing to pay for online ads that work

02/17/2009 | Bloomberg Businessweek

Although some analysts are citing dropping CPM rates and unsold display ad inventory as a sign of bad times for the online ad segment, smaller, targeted sites are able to charge a much higher average CPM rate, and sites that use cost-per-click or cost-per-action as their metric are posting growth even during this downturn, according to Jeffrey F. Rayport, founder and chairman of Marketspace, a digital strategy and customer experience firm associated with Monitor Group. "It's what we might call accountable media: advertising you pay for only when it works," Rayport writes.

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