Flycast Strikes $11M Deal for InterStep

Share this article:
Online ad network Flycast Communications began acting on its plans to build a new e-mail division last week by purchasing digital marketing firm InterStep, Cambridge, MA, in a stock deal worth more than $11 million.


InterStep, which was founded primarily as a technology play, charges high-end clients such as the Washington Post and Newsweek Interactive for e-mail delivery and management services. San Francisco-based Flycast plans to offer the services to smaller e-mail publishers who join its e-mail ad network, and in turn let marketers advertise on the publications much as it now lets e-tailers run ads on the Web.


"Our real purpose here is to build our e-mail network and use [InterStep's] capabilities to get people to join the network," said Larry Braitman, Flycast co-founder and executive vice president of the new division, dubbed eDispatch.


Flycast delivers banners across a network of about 1,000 Web sites, charging marketers a commission on any sales it generates. The company expects to take a higher commission for e-mail marketing.


"It helps us get to profitability faster because it's a higher-margin revenue stream for us," said Braitman, who added the company is still hammering out details on pricing for the service. Flycast lost $11.4 million on revenue of $11.1 million in the first six months of this year.


The company plans to debut three more initiatives in the first half of next year: Flycast Permission Marketing, E-mail Marketing Management Services and Customer Relationship Management Solutions.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Video's Going Programmatic, New Study Contends

Video's Going Programmatic, New Study Contends

Some 60% of brands now buy online video programmatically, according to a study from AOL's Adap.TV.

Dollar Growth Rate of Video to Peak This Year

Dollar Growth Rate of Video to Peak This ...

It will increase by 56% to $6 billion, then taper off due to growth in inexpensive mobile placements, says a new study.

Alliance Data Spends $2.3 Billion to Buy Conversant

Alliance Data Spends $2.3 Billion to Buy Conversant

CEO Ed Heffernan says the acquisition "bulks up" the digital marketing power of Alliance and its Epsilon and Loyalty One units.