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.


Loading links....
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's 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