Ad Costs on the Web Are Rising, but Perhaps a Bit Irrationally

Media executives and investors get a pleasant neck ache from watching the skyward path of online advertising revenues. But for those who have to pay for advertising, the trend is bringing some anxiety.
Prices for some online advertising are going up, and some retailers and brand marketers say the big question mark hanging over 2007 is whether publishers will be so emboldened by a strong advertising market that they will raise the prices of ads sharply.
“Everybody’s excited about online advertising,” said Mark Vadon, chief executive...
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