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News > Technology
Intel jumpstarts Web ads
August 5, 1997: 8:19 a.m. ET

Plan to subsidize some customer ads could boost industry total by 40 pct.
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NEW YORK (CNNfn) - Intel will singlehandedly boost advertising on the Internet by 40 percent next year with a new program to help pay advertising costs for customers that license its chips, according to press reports.
     The Silicon Valley giant already pays for 50 percent of a TV ad and 66 percent of a print ad through a cooperative program available to 1,500 hardware makers that buy its chips. In exchange, the ads must contain the "Intel Inside" theme.
     Intel sets aside 6 percent of the cost of the chips for those customers to use on advertising in the program.
     As part of the changes, Intel will pay up to 50 percent of a Web ad starting in 1998, according to reports in The Wall Street Journal and USA Today.
     The program will increase ad spending on the Internet by $166 million, experts say. Overall Internet advertising is expected to be $400 million this year.Back to top

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