Glam Makes Big Cuts In Publisher Payments - “Up To 80% Drop In Revenue” (://URLFAN)

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Glam Makes Big Cuts In Publisher Payments - “Up To 80% Drop In Revenue”

Post Date: Mar 29, 2008 12:09 p.m.
Ranked website: ajax-blog.com (Ranks #247277 of 2,815,144)

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Advertising network Glam is putting an end to at least some of its guaranteed payments to publishers, just a month after raising an $85 million round of financing. Scott Swanson, Glam’s GM and Vice President, told publishers in an email (full text below) that “house ads” that were served for unsold inventory were being discontinued as of March 25, except to fulfill “minimum commitments that Glam has contractually agreed to.” The email says the change was made to give publishers “more choice when it comes to how you use your unsold inventory.” But according to one large publisher partner to Glam, this is actually nothing more than a way for Glam to dramatically cut payments to partners. He said “While they’re spinning this as positive news, it sucks for publishers. Publishers were previously guaranteed $3 - $5 CPMs for house ads. By no longer running any house ads, that revenue dies. And, given Glam’s fill r...

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