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

IAB Tech Lab to Set Global Digital Marketing Standards

IAB Tech Lab to Set Global Digital Marketing ...

In looking to solve complex tech issues, the association opens up full membership to agencies and solutions providers.

Integration Meets Innovation in Planters' Digital Campaign

Integration Meets Innovation in Planters' Digital Campaign

The snacks brand found a healthy way to navigate today's world of digital marketing saturation.

USA Today Decides to Play Games for Real

USA Today Decides to Play Games for Real

It partners with game-maker Arkadium to add 60 new digital games to its site, offering advertisers more segmented breakdowns of players.