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International Ads

What is going on with international advertising?  Can anyone tell me how effective international monetization is?  I ask because I generally thought of those impressions as not particularly valuable, yet InMobi and Hi5, predominantly international advertising plays, just raised a ton of money.

Quick story: Guy at competing ad network announced several years ago that they would pay a certain amount for a certain kind of impression that I coveted.  But what was funny was that it was a flat CPM with no frequency cap and no geographic restriction.  We promptly offered more than double to publishers, but frequency capped it and only took US impressions.  However, the restrictions were in the fine print.  So I see one of the senior guys at the competitor a few weeks later and he says, “I don’t get it, how do you monetize all the international stuff!”  So we were cherry-picking all of the good impressions and then publishers would ship them all the leftover international and high-frequency impressions.

Anyway, what is state-of-the-art for monetizing international impressions?

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