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Why Online Display Ads Still Matter

Less pizazz, but steady income.

Most of the focus on the potential Microsoft-Yahoo! deal has centered on search marketing. But Yahoo! is an attractive target partly because it commands high rates for ads placed on its own site.

Nearly one-fifth of 2007 online display ad spending went to Yahoo!, according to an analysis of data from Nielsen Online, JPMorgan and other sources published in February's OMMA Magazine.

Yahoo!'s $12.65 CPM was three times greater than Microsoft's MSN, 50% greater than News Corp.'s Myspace.com, and about four times greater than AOL.

"However, some of Yahoo's weakness is also reflected in these results, since even with the large number of impressions, the revenue per thousand (RPM) was lower than more targeted Web publishers such as Weather Channel, MSNBC and ESPN," said David Hallerman, senior analyst at eMarketer.

Read more - eMarketer

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