Lower Ad-Serving Sales Hurt DoubleClick

Share this content:
DoubleClick reported lower second-quarter earnings yesterday, saying its ad-serving business declined.


The New York-based company, which provides a variety of ad technologies, including e-mail services, said soft demand from publishers for its ad-management services and lower catalog mailings in its Abacus business combined to cause its earning decline compared to the previous year's second quarter.


Overall, DoubleClick's sales were $69.2 million, up 8 percent from the year-ago period. Net income was $3.9 million, down 33 percent. The company lowered its forecast for the year. It now expects sales of $290 million to $315 million.


DoubleClick CEO Kevin Ryan called the quarter "disappointing" in a conference call with investors.


Ad management, which accounts for nearly half of DoubleClick's business, was a particular disappointment. The company said ad-server sales for the quarter were $31.8 million, down from $32.6 million a year earlier. The decline came as a result of lower sales to publishers, which make up about half of its ad-serving revenues, as DoubleClick experience increases in advertiser and rich media ad serving.


In a bright sign, DoubleClick said its e-mail business is doing well. It had positive income in the quarter and revenue increased 12 percent.


close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above