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Longstanding investor in Looksmart (and a 70 yr old ex-tradesman), who has a passionate interest in the problems of newspapers along with their success in all their monetisation attempts made, on the web. For the "times are indeed, a changin", I feel. [17th of Aug, 2011 - Print media... More
  • Looksmart's Q2 Report - Zero transparency, I'm afraid..... 1 comment
    Aug 4, 2009 8:51 AM
    I'm becoming a little tired with the continual dribble or, 'spin' being handed down to Looksmart's ordinary shareholders. God only knows how long this has been going on.

    The Co's pre-market open announcement todats saw this way oversold share-price value move up by 20% in no time ....

    There is was, for all to see...... 

    Looksmart are proud to have announce today that  -  LookSmart AdCenter Named "Best Search Engine Ad Platform" Finalist by Search Engine Watch for Two Consecutive Years Business Wire (Mon 8:00am)

    BUT it surprises me greatly that Looksmart (who were once so proud to have been an "independent" inter-connector of AdNetworks & publishers, Globally), haven't used the very word INDEPENDENT in any of their announcements - made since the Co was awarded the winner of last years inaugural Search Engine Strategies'  .. "Best Search Engine Ad Platform".

    The Co proudly told all (back then)......

    < .............................."This award belongs to our talented employees who have built a proven search advertising platform that advertisers trust to extend their PPC campaigns beyond major search engines," said Ted West, chief executive officer and president of LookSmart............  "We are honored that Search Engine Strategies has validated our company's strategy as we continue to emerge as a leading independent Search Advertising Network." > LookSmart - LookSmart AdCenter Named "Best Search Engine Ad ...

    And a search for the use of that clearly INDEPENDENT unbeatable 'edge' or, advantage,  No mention for quite some time now ... HMmm? WHY?

    http://investor.shareholder.com/looksmart/search.cfm?method=and&CategoryFromPath=releases.cfm&keyword=Independent&x=40&y=3 

    That "unique" situation (of being independent of any publisher involvement, whatsoever) has come about as a result of Looksmart ridding itself of all it's own consumer sites......... And the ask.com agreement is virtually (now), the last of the "managed" publisher involvements to remain.

    Perhaps AFTER ask.com is hosting arrangement is discarded Looksmart then may start to "tout" that (completely) INDEPENDENT advantage, once again?

    Looksmart (with AdCenter and it's Smart Rotation) are clearly stating that they are "on the side of the Advertiser" ........ By not having ANY publisher involvement they can (also) then operate that Independent OPEN Marketplace that they are completely reluctant to discuss these days, at all ..... That's the "management" side of what I feel is a Global RTB auction marketplace that is to be administered (managed) by Looksmart, and because of this very independence.

    Here's Looksmart's Michael Schoen clearly stating that they are "on the side of the Advertiser"...

    http://www.webpronews.com/topnews/2009/07/21/looksmart-intros-tool-for-serving-best-performing-ads

    Yes, and it's understandable that you can only be serving the "one" master and hope to still remain independent, from a management point of view. As publishers will 'watch-out' for themselves, right?

    And some of Looksmart's Q2 numbers, are.....

    Average Advertising Network revenue per click (RPC) for the second quarter of 2009 was $0.06, a decrease from $0.08 in the second quarter of 2008 and $0.07 in the first quarter of 2009.
     
    Q2 - 2008 Advertising Network Revenues $15.7 - 195M clicks @ .08rpc ($15,600,000)
     
    Q1 - 2009 Advertising Network Revenues $12.0 - 184M clicks @ .07rpc ($12,880,000)
     
    Q2 - 2009 Advertising Network Revenues $12.0 - 207M clicks @ .06rpc  ($12,420,000)
     

    So, paid clicks increased by 23 million (Q/Q) or, by 12.5% and only by 12M or, 6.2%, Y/Y
     
    Now, it's probably reasonable to say that "users" create those Ad "queries" and that resulting from this, come the paid clicks.
     
    And interestingly enough is, that Looksmart had said back in Q2 2008, that:

    "During this year's second fiscal quarter, LookSmart's network averaged nearly 500 million queries per day
     
     
    Then, on Apr 21, 2009 we were told, that .......

    "LookSmart's AdCenter processes more than a billion daily queries for LookSmart's syndicated network and.." 

    LookSmart Delivers Better Value to Advertisers with CPA-Optimized Ad Rotation
    04/21/09  

    And it's so hard to accept that if it's for a full quarter, then the Q2 period had only produced a 12.5% (Q/Q) increase (from an over 100% increase in "queries") and an even worse thought is that it's only a 6.2% increase for paid clicks, Y/Y.

    My real concern (there are others, of course) is the poor percentage of paid clicks that have resulted from (or, against) the doubling of those queries that create opportunity for clicks, now be over 1 billion daily ...
     
    LC


     
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  • LookingConfident
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    Author’s reply » I had previously written, that .....

     

    "My real concern (there are others, of course) is the poor percentage of paid clicks that have resulted from (or, against) the doubling of those queries that create opportunity for clicks, now be over 1 billion daily ..."

     

    But a look at the CC has mad me even MORE confident than ever, thanks to the Looksmart's CEO Ted West's revelations, within it .....

     

    www.sharecafe.com.au/b...

     

    From within another of my posts written, over on ShareCafe (linked above) in Australia, I have replied as follows:

     

    ##...And I do think they are all already "hooked-up" but are just not yet, "paying a fee" (that 8% in the dollar) like ASL (ask.com with it's $1.2M are doing) with advertisers probably (currently) getting to go directly to them possibly? ..... And as this is exampled in increased traffic in the case of both the former (and now) 'direct' publisher partners in Cox & Local.com. [Link] - "re: All LOOK's good to me... (2)" - ##

     

    And in regards to my own (linked above) "theory" (on this point), CEO Ted West (from within the CC), probably helps to strongly support me, with the following:

     

    < Our first competitive mandate is to innovate on our AdCenter keyword platform, which is the cornerstone of our keyword search advertising business and the basis for our competitive differentiation and our value.

     

    As you know through the AdCenter, we provide keyword matching and auction pricing needed by publishers and advertisers to achieve their business goals in search.

     

    We have a long history of scalability and performance innovation on our AdCenter platform. During the second quarter, the [AdCenter] platform processed well over 1 billion search queries and delivered over 2.2 million paid clicks per day.

     

    The AdCenter platform is build to scale, and importantly to operate and deliver paid click transactions both quickly and reliably at that scale.>

     

    It can't become any more clearer to me (and it should help you the reader), than that!

     

    Looksmart's AdCenter has delivered over 2.2 million paid clicks per day, during the second quarter!

     

    Looksmart's OWN Ad Network only (only?) had 207M paid clicks in the quarter. And has even increased it's TAC to get them. This all augers so well, really it does!! IMHO.

     

    Q2 - 2009 Advertising Network Revenues $12.0 - 207M clicks @ .06rpc ($12,420,000)

     

    Looksmart's paid clicks increased by 23 million (Q/Q) or, by 12.5% and only by 12M or, 6.2%, Y/Y

     

    Is it any wonder that few have sold following yesterday's Report? (Silly ShareCafe poster Mike Moron did. He "nailed it", he tells Tex - < Out +.21 net ....on 6k shares >, over on Yahoo .....Not only does he tell lies, but he forgets that he "sold" his 1000 shares (following the Q1 Report), @ $0.97cps ...Yes, he "nailed it" then, too!

     

    And had he held them, he'd be 'sitting on' a paper profit of some .37cps or 38% , from that sell price level. Instead of having a losing trade, that that transaction was! No... They only want to talk of their "winning" trades, do compulsive liars!! Mike Moron "never" loses!!!

     

    lol !!

     

    The over-night "course of sales" (as per the Nasdaq site) tells me that accumulation continues on with Market Makers doing their (old) "short and cover" tricks. With that priviledged "fractional" (cross-trade-like) transaction they make, to mostly try and generate sales at the price or, balance-up on their previous sale price volume of shares, they may have 'short' sold. Volume was low @ 24,436 with an av. daily volume now @ 30,000....

     

    www.nasdaq.com/aspx/nl...

     

    LC
    4 Aug 2009, 09:58 PM Reply Like
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