Thursday, November 30, 2006

Google runs 'secret' ad network aimed at US blue chips

Google is reportedly running a "secret" online advertising network aimed at America's biggest companies.

On his blog, "dot com mogul" John Chow reveals that he was invited to join the Google Display Advertising Network, which Google is operating but not talking about.

Based entirely on a CPM model, the network is designed to sell display and video ads to Fortune 1000 companies that are looking to develop their brands.

The process is different from that used in Google's hugely popular AdSense, where advertisers are not given a breakdown of the revenue split on their account.

Perhaps to be expected in a network aimed at blue chip firms, partner companies negotiate a flat CPM rate with Google and contracts run for one year. The publishers have to guarantee that they will generate a predetermined amount of ad inventory per month and can receive the same CPM rate if they exceed this.

Google's Display Advertising Network works by invitation only and the company's machinations come at a time when online advertising is permeating every level in the marketing food chain.

Recent big-name advertisers to embrace a greater online presence include Pepsi-Cola and Motorola.


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