Mediaplex's MOJO Blog

Data Integrity, Privacy, Control, Customer Retention/Acquisition are four of the primary focuses of companies in the finance field.   Whether you are in banking, mortgages, securities or financial consulting, online financial advertisers need to have the peace of mind that they can maximize ROI while, at the same time, abide by all regulations required of them (Sarbanes Oxley, PII, Can-Spam Compliance, NAI, IAB etc…).

Luckily for advertisers living in this world, there are a few things tips and tricks that can help.  Here are a few of them:

• Longevity of Partner – Before you do anything, it is important to assess the technologies you are using to buy media, serve media, acquire audience,  supplement your media  and track your performance.  If you have ever seen the overwhelming “Lumascape” of companies occupying the online space (See Lumascape) you know that there are a lot of options out there that sell a variety of products.  Make sure you work with partners that have experience in your vertical, have the infrastructure to support your demands, and you know what you are getting!!
• Dynamic Messaging + Geo – Leverage dynamic messaging to feed in interest/mortgage rates or the latest stock quote.  Further, layer location based targeting to find people that may be in your market, a feature particularly useful for financial consulting and localized banking.
• Data Feeds – Some major advertisers have the need to go beyond traditional reporting and import raw data dumps into their proprietary internal analytic systems.  For those advertisers, it is important to be able to seamlessly import data into their system the way that is optimal for their business (not just way the provider is willing to give it).  These files could include conversion, event level or Path to Conversion data.
• Tag Management – It is important to have a partner that has the experience to know how and where to place conversion tags, whether those tags need to be “secure” or not, and tags that won’t hinder page performance.  Nothing is worse than getting to a page the renders the pop up box “contains secure and unsecured items”.

For information regarding this, make sure to contact your dedicated account manager or sales rep at 1.877.402.PLEX (7539).

WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)– ValueClick, Inc. (Nasdaq:VCLK) today reported financial results for the fourth quarter ended December 31, 2011. Revenue, adjusted-EBITDA¹ and non-GAAP diluted net income per common share were all above the high-end of their respective guidance ranges.

“We completed a successful 2011 with strong fourth quarter results, including Media segment results that were driven by 20 percent organic growth in our display business, double digit growth in the Affiliate Marketing and Technology segments, and very strong performance by our recent acquisitions,” said Jim Zarley, chief executive officer of ValueClick. “We will continue to invest in people and in our data, optimization and traffic platforms to expand our presence in the digital marketing industry, and we remain confident in our ability to generate more than $700 million in revenue in 2012.”

Highlights from the fourth quarter of 2011 results include:

• Revenue of $182.6 million, up 42 percent from the fourth quarter of 2010 (Q4 2010);
• Adjusted-EBITDA of $62.7 million, up 50 percent from Q4 2010;
• Adjusted-EBITDA margin of 34.3 percent versus 32.5 percent in Q4 2010;
• Income from operations of $45.6 million, up 39% from Q4 2010;
• Non-GAAP net income² of $0.47 per diluted share versus $0.31 in Q4 2010; and
• GAAP net income of $0.35 per diluted share versus $0.26 in Q4 2010.

The consolidated balance sheet as of December 31, 2011 included approximately $117 million in cash and cash equivalents, and $167.5 million in total debt associated with the August 31 acquisition of Dotomi and subsequent share repurchases.

Share Repurchase Program Update

During the quarter, the Company repurchased 2.8 million shares of its common stock for a total cost of $44.2 million. During fiscal year 2011, ValueClick repurchased 9.7 million shares of its common stock for a total cost of $145.0 million. Since the Dotomi acquisition announcement on August 1, ValueClick repurchased 7.1 million shares, which largely offsets the shares issued as part of the acquisition.

Today, ValueClick announced that its board of directors has increased the share repurchase program authorization by $59 million, bringing the program’s current total authorization to $100 million.

Cost Reclassifications

Beginning with the fourth quarter 2011 results, the Company will make two accounting reclassifications that have no impact on the Company’s historical consolidated revenue, operating income, cash flows, net income, net income per diluted common share or adjusted-EBITDA, or on historical revenue or operating income by segment.

First, ValueClick is electing to reclassify certain costs associated with payments to search engines for driving consumer traffic to the Company’s owned and operated websites. Historically, these traffic acquisition costs have been classified in operating expenses in the Sales and marketing expense line item. The Company is now classifying these costs in Cost of revenue, which the Company believes will provide increased transparency into the drivers of the Owned & Operated Websites segment.

Second, ValueClick is correcting the accounting classification of the amortization of developed technologies and websites acquired in business combinations by including it in Cost of revenue. Amortization related to developed technologies and websites acquired in business combinations was considered immaterial prior to the Dotomi acquisition and was previously recorded in operating expenses in the Amortization of intangible assets acquired in business combinations line item.

All prior periods presented in the Consolidated Statement of Operations and Segment Operating Results included in this press release are presented using the new classifications. A table with historical trend information is available at http://ir.valueclick.com.

Business Outlook

Today, ValueClick is announcing guidance for the first quarter of 2012:

The consolidated revenue guidance range is based on the following segment-level assumptions for revenue growth rates, expressed as a percentage increase from first quarter 2011 reported revenue levels:

First quarter 2012 guidance assumes stock-based compensation of $6.2 million, amortization of intangible assets of $8.8 million (including $2.5 million recorded in Cost of revenue), net interest and other income of zero, a 38 percent effective tax rate, and 82 million diluted shares outstanding.

Every year, people look forward to the most popular show on television—the Superbowl.  The Superbowl not only has exciting season ending excitement, but many viewer stay glued to the television for the half time show and high budget commercials.  Yesterday, ClickZ published their Superbowl commercial winners and losers here.  I agree with some of their picks but definitely had some favorites from the list.

Here is a list of the advertisers mentioned as winners and losers:

Winners

M&Ms “Ms. Brown” – Click to see on YouTube

Chevrolet – 2012 – Click to see on YouTube

Teleflora-  Adriana Lima 2012 – Click here to see the ad on YouTube

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Online retailers have a set of challenges that they need to tackle to be successful.  These marketers may face a stiffer challenge than others when it comes to brand awareness, targeted marketing efforts and ROI.  So what can these marketers do online that will move the needle and make a difference?

As every retailer has a different niche, audience and focus, here are a few ideas to consider for those running display ads online.  A few of these ideas might just be the catalyst for success in your next campaign:

• Track Everything – Some advertisers have separate teams working on separate online channels where each team is tracking their success independently.  They might be running some paid search campaign along with display, social, etc., but if they aren’t tracking all these channels holistically there is no way to get an accurate ROI value and understand the influencing events different channels have on each other.  The key is to have all online marketing initiatives drive toward the same goal.
• Behavioral Dynamic Messaging – Tying in dynamic messaging with behavioral targeting packs a “1, 2 punch” with online retailers as they try to push wide varieties of apparel, cosmetics, guitars, books or computers.  Dynamic messaging can create many iterations of creatives and layered on  behavioral targeting makes sure that the consumer sees the most relevant ad possible.  Online retailers can then hone in on the most effective creative with the most effective audience and report on the findings!!
• Tie in Offline with Online  – Brick and mortar establishments have the ability to tie in offline conversion data with online activity.  For example, if a user reserves a rental car online, many brands do not consider that a “real” conversion until that customer drives off the lot”.  In the same way, that an online coupon could correlate with in-store sales.
• Be Social – Adding social ‘boosts” to your creative assets can make any creative more engaging.  Adding buttons related to Facebook, Twitter, Store Locator, and/or YouTube will have consumers a chance to interact with your brand see your fan page and see other brand advocates.

For information regarding this, make sure to contact your dedicated account manager or sales rep at 1.877.402.PLEX (7539).

As I realize that 90% of you already recognize the value of mobile and social media, I think it is fitting to bring up a recent update released by eMarketer regarding the adoption of social and mobile media.  Here is a quick snapshot of the findings:

• About two-thirds of web users, for example, will use social networks next year, and more than 90% of that group can be found on Facebook.

• Twitter will enjoy even higher growth, albeit from a small base. eMarketer  estimates that more than 24 million online adults will use the service next year, representing 10% of the overall adult population.

As for mobile stats, this graphic speaks for itself:

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