DoubleClick Buys Part of Cost-Per-Click Network

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No. 1 online ad network DoubleClick Inc. spent $85 million in cash and stock last week to take a 30 percent stake in ValueClick Inc., Carpinteria, CA, an ad network that charges marketers on a per-click basis rather than a cost-per-thousand impressions basis. DoubleClick, New York, also received a warrant to buy another 15 percent of ValueClick within 15 months.


DoubleClick said it will work with the smaller network to integrate Dart, DoubleClick's ad-serving system, with ValueClick's technology platform. DoubleClick gained two seats on the other firm's board of directors.


ValueClick's performance-based advertising model contrasts with DoubleClick's traditional approach, which has been to charge high CPM rates for banners on marquee Web sites.


DoubleClick's move follows San Francisco-based network Flycast Communications Corp.'s December introduction of its own cost-per-click program called CPCnet. DoubleClick rival CMGI is slated to acquire Flycast later this month.
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