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Online ad inventory: Telegraph, Bauer and News International could cut out sales networks

Recession forces innovation, and some of the UK's flaghip online publishers could finally overcome their differences and pool advertising inventory, writes Brand Republic. A dozen previous attempts may have collapsed, but the new Project Alliance stands a fighting chance for three reason: the media groups can't afford to continue running high volumes of unsold (or low grade CPC-sold) inventory, compared to the reach of Yahoo, Facebook and other top 10 sites their audiences are still far too small for many brands so the only route to mass market campaigns has been through sales houses that take a high margin and sell at low prices, and thirdly WPP's drive to improve its own margins (they have been pushing for an alliance for some time). If a deal is struck it will open up a more efficient direct advertising channel, and gives a model other countres are highly likely follow.
From Brand Republic:, 30/06/2009


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