ValueClick Divesting Lead-Gen Biz
ADOTAS – After posting preliminary fourth-quarter revenue 13% lower than the previous year, ValueClick announced that it will be selling its promotional lead generation business.
The online advertiser — which owns Commission Junction, Smarter.com, CouponMountain.com and PriceRunner — reported $130.2 million in fourth-quarter revenue, missing Wall Street analyst estimates of 133.1 million.
The lead-gen business made up 48% of ValueClick’s revenue, but it’s been on the decline due to weak macroeconomic conditions and a Federal Trade Commission investigation that resulted in an $2.9 million settlement over allegations that it used deceptive marketing practices in violation of the CAN-SPAM and FTC Act. Talk of selling the underperforming lead-gen side have been brewing since the summer.
ValueClick announced that it plans to focus instead on its online marketing services and tech businesses, growing them via organic initiatives and acquisitions.
Reader Comments.
Can you say “tier-one”? With arguably the strongest offering in tier-one affiliate programs- Commission Junction- this makes sense. While the lead gen accounted for 48% of revenues I bet they also accounted for 99.9% of their problems.
Wow, shedding 48% of the revenue. I applaud managment for their discipline. Time will tell on results.
What do the pundits who think “the whole world is moving to pure lead gen” think of this move? A leader in lead gen dumping their lead gen business…
can you say value destruction?? thats all vclk has ever done…grow by acquisitons and then suffer declines in each new business unit because they have never intergrated anything successfully and are always a THIRD tier player….
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