P&G wrangles to recast Web CPMs

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Procter & Gamble Co. is embroiled in a face-off with World Wide Web publishers that could shatter the way online advertising is bought and sold. The nation's largest advertiser is soliciting proposals from major Web media sites to place ad banners for as many as eight brand-oriented sites. But P&G won't make a purchase unless Web sites change their model for pricing sponsorships.

Web ads generally are sold at a cost per thousand based on impressions--every time a page with an ad banner is seen. Web CPMs at major sites generally range from $10 to $80. But P&G wants to buy Web advertising based on how many times an ad is clicked. Under that model, the marketer would pay only when someone sees an ad on a Web page and also clicks on it to jump to a P&G site. Click rates for banner ads are as low as 2% on some sites.

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