Autobytel (ticker: ABTL) CEO Rick Post discussed the revenue his company generates from advertising on his November 3rd conference call. Like many other Internet companies, Autobytel is moving into rich media -- in this case podcasts and downloadable video streams -- and believes that advertisers will follow. Key extracts:
During the third quarter, advertising page views increased to approximately 111 million or 22% from approximately 90 million in the second quarter of 2005. Year over year, page views increased by 32%. The CPM per page for the third quarter of 2005 was approximately $39 compared to $44 in the second quarter of 2005. We expect to see continued strength from this portion of our business as we further develop rich media and direct marketing offerings.
…OEMs and their agencies continue to shift more of their advertising spend to the Internet. From an ROI perspective, they are seeing that a single 30-second TV ad spot during prime time may cost as much as $600,000, but an interactive ad can be developed and run for $150,000 and reach a much more targeted audience. Many of the OEMs are exploring how to use video-on-demand, which is an exciting opportunity for Autobytel. Our CarTV property posted 5.1 million video views during the third quarter, an increase of 66% from 3.1 million in the second quarter of 2005.
We believe that we are the first automotive site to provide downloadable video content for iPods…
(Quotes are from the CCBN StreetEvents transcript.)