UK advertising and public relations group Chime Communications yesterday announced it had taken a one-third stake in Web Marketing, a specialist in online "video banner" web ads. The cash and shares deal is worth £5.8m

A relatively recent start-up, Web Marketing was behind the internet debut of ‘video banner’ advertising. The first user of this new technology was Peugeot in an ad for its 406 model. Similar banners followed for Star Trek, Toyzone and Fight Club, as did a controversially spicy ad for Pretty Polly.

Said a Chime spoke: "Although Web Marketing is not currently making a profit, we believe the growth rates predicted for internet advertising mean it is a market we should have a share of and that Web Marketing can become profitable quite quickly."

News source: Financial Times