Reckitt Benckiser is spending a small fortune on online video and is pushing down CPM rates with publishers. But while they say they are “at once validating the market and taking it down a notch” they’re really just playing but conventional rules.

Most advertisers demand placement in the most relevant and high-traffic areas of a site, leaving 40% – 60% unsold inventory (excess supply) on less desirable site sections. Publishers are willing to cut deals on rates for these lower-demand portions, and these deals are exactly what Reckitt Benckiser is getting. Reckitt has a good (albeit old school) idea; unsold inventory can be produce an excellent ROI with the right targeting (Day parting, geotargeted, frequency, demographics or even site category) and the right price. But if they are want to be successful they need to examine the quality of the traffic they’re buying, where it is coming from and what the user is going to do with it once they click the ad. As in all things, “A campaign is only as good as the conversions they influence.”

Media bottom line: