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Message: Video Advertising....

Video Advertising....

posted on Dec 24, 2004 08:20AM
IT TAKES IVILLAGE

The upward tilt on iVillage`s stock chart looks every bit as steep as Yahoo`s -- even though the numbers are far smaller. The stock, a former highflier from the dot-com days, was trading below $2 in 2003, before McCormick`s advertising strategy got going. For 2004 the company figures that revenue will grow by 15%, to $66.6 million, and that it will eke out a profit of $3 million, marking its first year in the black in its nine-year history.

The stock now trades around $5.90, and analyst Youssef H. Squali of Jefferies & Co. (JEF ) sees plenty of room for it to rise. The key, he says, is that iVillage is revamping the site to roll out more video -- both for ads and editorial features. ``Advertisers are willing to pay 100% more for video than traditional banner ads,`` he says. And iVillage will create more video programming to accompany the ads, which he says may well attract more visitors to the site. ``That could give them two engines of growth,`` he says.

http://www.businessweek.com/magazine...

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