DoubleClick: Ad Serving Prices May 'Bottom Out' in 2005

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DoubleClick said its ad management prices keep falling, though it thinks ad serving costs will stabilize next year.


"We can't say for certain when pricing will bottom out, but we think that will happen in 2005," CEO Kevin Ryan said Thursday in a conference call with financial analysts.


DoubleClick's ad management revenue in the third quarter totaled $29.8 million, down 3 percent from a year ago.


DoubleClick faces competition in ad serving services from rivals such as aQuantive's Atlas DMT, 24/7 Real Media and Accipiter. Despite increasing Internet advertising prices, Ryan said the technology costs for displaying those ads keep falling, though DoubleClick's serving costs are falling faster than pricing.


Overall, DoubleClick said its sales reached $81 million in the quarter, up 8 percent from a year earlier. Net income was $15.4 million, up from $6.3 million a year earlier.


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