Lower Ad-Serving Sales Hurt DoubleClick

Share this article:
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.


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

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.

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.