Archive for MIVA

Articles of the Day

Posted in Digital Media, News with tags , , , , , , , , , , , on November 11, 2008 by Dave Liu

Mindshare Wants A Lotame, And A Lot Of You: Cuts Deal Based On How We Spend Time Online — In a Madison Avenue first, WPP’s Mindshare unit has cut a
deal to begin serving ads to social media users based on the time they
actually spend engaged on social media sites, and the advertising content
surrounding them. The deal, details of which will be announced today with
Lotame, the developer of an advanced audience behavior targeting system, is
another step by a major agency away from the classic advertising model of
placing ads based on the context of media content and instead moving to one
based on the context of the audiences consuming it.

AT&T’s VideoCrawler: Part Of A Bigger, Three-Screen Content Distribution
Plan
— A strange launch at a strange time, and from a strange source: AT&T
rolled out a beta version of VideoCrawler, an online video search and
aggregation engine. The public beta comes about three months after an even
softer launch designed to help the company work out VideoCrawler’s kinks,
and AT&T partnered with video search tech firm Divvio in its development.
Divvio founder and CEO Hossein Eslambolchi is AT&T’s former CTO.

FT.com Relaunching This Week: Pink Front Page, New Name Target ‘Obsessive’
Users
— FT.com will tomorrow roll out the latest installment of its
long-term web redesign with a pink front page and a region-specific
homepage for its growing Middle East audience. Those are some of the
immediate changes but, as a redesign, it’s more like a war of attrition:
more changes are on the way but the whole process won’t be over for some
months. In an interview with paidContent:UK, FT.com editor James Montgomery
spoke of his long-term goals and why there’s no money to be made in
attracting casual users.

Facebook Launches New Ad Product, Still Lags Behind MySpace — Facebook may
have passed MySpace in terms of worldwide audience, but the social
networking giant has struggled to sell ads as effectively as its
competitor. Today, the Palo Alto company is unveiling its latest ad format,
called “engagement ads” which prompt a user to do something within the ad
unit, such as post a comment about a product or RSVP to watch a TV show.
Once a user engages with an ad, a message would then be sent through the
news feed to his or her friends list. As the Journal points out, Facebook
has a lot to prove with the new format, which is being made available to
all of its advertisers after four months of testing. According to comScore,
Facebook’s share of U.S. online display spending was just 1.1% in June. By
comparison, News Corp.’s Fox Interactive Media unit, which includes
MySpace, was the market leader in display spending with 15.9%.

For Professional Content, YouTube Pales Next To Hulu — New York Times
technology writer Saul Hansell says Google’s recent move to put
feature-length films and TV shows on YouTube is — like most of the online
video giant’s forays into professional content — more show than substance.
Hansell claims that Google is merely intimating that the professional video
market could become a core moneymaking strategy for YouTube, without really
making the commitment to it. Meanwhile, Hulu.com, the joint venture from
NBC and Fox, is starting to establish itself as the most prominent site for
professional TV shows and movies. As Jim Packer, MGM’s co-president, tells
the Times, “We will have some long-form videos up on YouTube, but I don’t
think that’s the platform to have 30 or 40 movies up at once. I feel much
more comfortable doing that on a site like Hulu.”

Advertising Earnings: Miva Raises $10 Million Credit Line, Posts Q3 Loss;
Marchex Fares Better
— PPC-centric ad network and media company MIVA has
secured a $10 million credit facility from Bridge Capital Holdings
subsidiary Bridge Bank, NA. America’s Growth Capital arranged the credit
line, and MIVA was eligible to borrow $6.5 million of it as of the end of
Q3. The Fort Meyers, FL-based company will use the funds to expand
distribution of its ALOT toolbar, roll out a new media platform (and likely
stave off potential buyers like Blinkx). MIVA seemingly needs all the help
it can get. In today’s Q3 earnings report, the company posted a $10.5
million loss (or 32 cents per share), in contrast to a $3.3 million loss
(12 cents per share) in Q307. Part of the loss stemmed from the company’s
restructuring program—which resulted in a $2.7 million charge in the
quarter—but revenues were also headed the wrong way, down 21 percent to
$28.1 million. CEO Peter Corrao said that MIVA’s restructuring program and
the new ad platform should get the company profitable in 2009.

Articles of the Day

Posted in Digital Media, News with tags , , , , , , , , , , , , on October 8, 2008 by Dave Liu

Blinkx Drops Bid For Search Marketing Firm Miva — Online video search firm Blinkx, which is publicly traded on the AIM market, has dropped its public bid to acquire pay-per-click ad network MIVA. The London- and San Francisco-based Blinkx had offered $1.20 per share, valuing Miva at $41.13 million, a 54 percent premium over its early August stock price…Miva board rejected it outright then, saying the bid wasn’t up to the mark. This morning, in a statement, Blinkx explained its decision to withdraw: “The large premium blinkx offered in our initial proposal is even more significant today in light of MIVA’s second quarter earnings miss, subsequent downward revision of annual guidance, and public disclosure related to restructuring of the Media EU business. By choosing not to engage in substantive discussions in any material respect and an agreement with blinkx, MIVA Board and management in our view have failed to give due consideration to a transaction that had a uniquely attractive opportunity for MIVA shareholders, particularly in light of several challenges MIVA faces in the near term.”

AOL-Yahoo Merger Details Emerge; Deal Could Happen This Month — Yahoo is continuing its marathon merger discussions with AOL, sources close to the negotiations have whispered to us, and a deal could happen as early as this month. Is this just a rehash of the reported discussions in February and then again in April? Yes and no. It’s clear that AOL’s parent company, Time Warner, wants this deal more than ever. What isn’t clear is whether AOL’s assets will fix any of Yahoo’s problems. The deal structure that is currently being discussed is Yahoo’s acquisition of AOL (content, services and advertising), minus their subscription dial up business. That plus a couple of billion dollars in cash from Time Warner gets them approximately a third of the combined entity. Time Warner’s AOL headache is gone, and they have a stake in the world’s most valuable chess piece in the Google/Microsoft search and advertising war.

Viacom-YouTube Update: VCs Will Have To File With Court On Decisions To Back YouTube, Sell To Google — YouTube’s VC backers are being asked to explain to a federal court why they invested in the video venture—and why they sold to Google. As part of the $1 billion lawsuit Viacom (NYSE: VIA) filed against YouTube and Google in early 2007, MarketWatch reports, Viacom wants documents from Sequoia Capital, Artis Capital Management and TriplePoint Capital “related to the firms’ “actual and potential” investment in YouTube, Google’s acquisition of the startup and a “proposed indemnification for copyright infringement relating to this merger.” The documents are due Oct. 27, although there have been a lot of delays in this case all along so who knows. The companies reaped significant rewards in Google stock in the $1.65 billion 2006 sale: Sequoia, $504 million; Artis, $83 million; TriplePoint, $6.4 million. MKTW sees the notion of having VCs explain themselves as unusual but Google senior litigation counsel Catherine Lacavera says it is “not out of the ordinary.”

Google Begins Wider Testing In-Game AdSense System — Google is hoping to take advantage of in-game ads’ strong growth with its new AdSense for Games system, the company announced in a post on its blog. Citing comScore data, Google says over 25 percent of web users play online games every week, representing over 200 million global users. Google began offering the system on a limited basis back in November. It started off using pre-roll and mid-roll inserts with gaming startup Bunchball Games. With this wider beta test, AdSense for Games will let marketers place video ads, image ads, or text ads within developers’ games. The system is based on technology from Adscape, which Google bought for $23 million in February 2007.The AdWords sales team will sell company’s in-game ad placements directly to advertisers. Google is also promising text and image ads that are targeted by demo and location. To be eligible for the program, publishers must have a minimum of 500,000 game plays and have 80 percent of their traffic from the U.S. or the U.K.

Yahoo’s Yang May Have Missed Sales Opportunity In Asia — Yahoo CEO Jerry Yang has made clear his intention to sell off Asian assets such as Alibaba.com Corp. and Gmarket Inc. But thanks to the global financial crisis, it looks like he may have missed his chance to get top dollar. Such holdings have shrunk about $2.2 billion–that’s 23%–since Yahoo assessed them in July. The value of the holdings has been depressed thanks to investor fears that the deepening crisis will hurt the Internet advertising market. And even if a buyer were interested at this point, raising the capital to make the purchase would likely prove difficult now that banks are hoarding cash.

IAC/InterActiveCorp CEO Acknowledges Business Is Being Scrutinized For Divestments; Declines To Name Potential Disposals — IAC/InterActiveCorp boss Barry Diller declined to name potential disposals being considered by the listed Internet conglomerate. In the course of a Wall Street Journal interview, Diller was asked to identify areas of operation which might be divested; he replied that the decision had not yet been made so he would not be specific. He added that the New York-based group’s businesses were being analyzed in relation to size and markets to see if they were worth bothering with, the report said. When asked whether the credit crunch might hamper any efforts to sell, Diller said Internet companies had not so far suffered too much but added that it was possible the sector might freeze in the future. IAC/InterActiveCorp was broken up by Diller several weeks ago in a move towards streamlining the company, the report noted. It added that Diller said any acquisitions made with the proceeds of the USD 1.3bn break-up are most likely to be in the Internet advertising sphere with which IAC is familiar. Source: WSJ.

Articles of the Week

Posted in Digital Media, News with tags , , , , , , , , , , on August 8, 2008 by Dave Liu

Google: AOL’s Not Worth $20 Billion Anymore — Google has filed its 10-Q quarterly, and some interesting language about how it continues to value its 5 percent stake in AOL: “We review our investment in AOL (NYSE: TWX) for impairment in accordance with FSP SFAS 115-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments (“FSP 115-1”). Based on our review, we believe our investment in AOL may be impaired. After consideration of the duration of the impairment, as well as the reasons for any decline in value and the potential recovery period, we do not believe that such impairment is “other-than-temporary” at June 30, 2008 as defined under FSP 115-1. As a result, our investment in this non-marketable equity security is carried at cost on our Consolidated Balance Sheets. We will continue to review this investment for impairment in the future. There can be no assurance that impairment charges will not be required in the future, and any such amounts may be material to our Consolidated Statements of Income. “

Blinkx Bids $41 Million For Miva; Ad Net Rejects Proposal — The Miva board has rejected this bid, “following careful review and consideration”, the company said in a statement. The board said that it “believes that blinkx’s proposal significantly undervalues Miva’s assets, including our technology, brand recognition and network…We don’t believe that the proposal, as currently constituted, is in the best interests of our shareholders. The Board of Directors continues to evaluate all of MIVA’s strategic options in the context of our industry and the broader business environment and remains committed to evaluating and considering offers that maximize shareholder value.” In Blinkx’s letter to the Miva board, the company says Miva faces “several challenges” including new technology costs, “deteriorating cash position”, deterioration of its Media EU business and “continued decline in revenue and profitability”. Blinkx says its matching technology “will enable immediate platform improvements for MIVA”, will bring it higher CPMs and can add to its toolbar product. The pair partnered back in 2005, when Blinkx served Miva ads on to its SmartAds platform. Miva income fell 4.6 percent year-on-year in Q1 while losses improved at $5.1 million (GAAP).

Yahoo: Prepping For A Search Revival — Noah Mallin poses the question of whether Yahoo has been the victim of schadenfraude from the entire marketing industry–that is, we’re all taking pleasure in the Web giant’s bad fortune. While the company has admittedly faced major challenges in recent months, Mallin outlines areas in which Yahoo is charging forward–particularly with search. “A close look suggests that Yahoo hasn’t given up on search and in fact may have the pieces in place for, if not a comeback, at least a stabilization of their fortunes,” he says. “The first bit of evidence is the re-jiggering of their search algorithms this week. There’s also been an upgrade rolled out to Yahoo Maps in the last week or so for better usability and functionality.” Mallin also highlights Yahoo’s advancements with Search Monkey, allowing third-party developers to impact the users’ search experience, as well as the BOSS (Build Your Own Search Service), which lets businesses use parts of Yahoo’s search algorithm to develop their own engines.

The Knot’s Q2 Profits Fall 52 Percent; Revenues Essentially Flat — Weddings lifestyle company The Knot pointed to a challenging economic environment, as it posted a 52.1 percent decline in Q2 profits, as net income was $2.3 million ($0.07 per basic and diluted share) from last year’s $4.8 million ($0.15 per basic and diluted share). Revenues barely rose to $28.7 million from Q207’s $28.5 million. National online revenues were up modestly to $5.4 million and $10.1 million for the three- and six months ended June 30, 2008, respectively, compared to $4.9 million and $8.4 million for the corresponding periods in 2007. Local online revenues also recorded small gains of $8.0 million and $16.3 million for the three and six months ended June 30, 2008, respectively, as compared to $7.6 million and $14.9 million for the corresponding periods in 2007.

Did Facebook Try to Buy German Clone StudiVZ? All Stock Offer — The U.S. company had been negotiating for months to try to buy StudiVZ, but couldn’t come to an agreement. Buying the much bigger StudiVz would have given Facebook a foothold in one of the few big Western markets in which it has not established a significant presence, the story reasons. StudiVZ had 12.2 million users in Germany in June, is about 10 times the size of Facebook.de, the German version of the service. StudiVZ was bought out by Holtzbrinck group, the German publishing giant, for a reported $112 million (IHT says the price was around $134 million, but both numbers were speculations) late in 2006, and the parent wanted many times that reported price. The two companies surely had talks, but one Facebook source IHT quotes says that those were more related to the issue of copying the design. Since Holtzbrinck bought StudiVZ, it has expanded, starting a new portal in February 2007 for middle and high school students called SchulerVZ, and this year added a portal for college graduates called MeinVZ.