Seeking Alpha

LookingConfident's  Instablog

LookingConfident
Send Message
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
  • Does MDC Partners Buy-out DG FastChannel (DGIT), in 2012? 1 comment
    Dec 30, 2011 9:24 PM
    ... Looksmart (said to be now, a purely 'performance based' operation) may receive as little as 8% of the total CPC that's paid by advertisers, for it's 'middle-man' role within it's global marketplace.

    Interesting to note....(Q4 Revenues)

    It clearly IS a (uniquely independent) performance based marketplace.

    In accepting my assumed (low) 8% 'toll' commission paid by advertisers to Looksmart (for each/every transaction had within its exclusive, global performance marketplace), and by taking a line through the Company's Advertiser Networks revenues (for the third quarter of 2011 -- they were up Q/Q from $6.3M to $7M), today's article by Darren Herman (below) becomes of real interest in more ways than one, I feel.

    (And it could well confirm my own strong belief, in that Looksmart is now declaring it's "comprehensive income as revenue" ONLY, theory. Being just the percentage of each 'spend' that's being paid directly by agencies or, advertisers, straight to Looksmart.)

    seekingalpha.com/instablog/36191-looking...

    That means there's some 92% of what advertisers spend on the proven successful CPA/CPV performance advertising via Looksmart being passed on by those advertisers/agencies directly to publishers or, their respective network representations. To then see the latter (mentioned) 'slice' some more off, accordingly.

    In his article "Marketing Technology behind $35 billion in holiday 2011", Darren Herman makes no mention of the performance 'share', at all.
    Yet, he does add the possibly relative 3rd Party Ad Serving break-up: DoubleClick (55%), Microsoft Atlas (25%), ValueClick MediaPlex (35%), MediaMind (5%) ...  (Hell, it's only a paltry $70 million spend or, so during Q3 or,this Q4, if Looksmart's own 'cut' was even @ say, as high as 10%? - With Looksmart then having an annual advertising spend of some $300M through it's own marketplace?)

    Understand exactly where I'm coming from with my "comprehensive income as revenues" (being declared by Looksmart)  theory, Folkz?

    Darren Herman (who is the Chief Digital Media Officer of Varick Media Management's "The Media Kitchen" - - - a business that just happens to be owned by Looksmart Director Scott Kauffman's (other Co), in Canada's MDC Partners.

    seekingalpha.com/user/36191/instablog/se...

    Darren (Herman) does have a 'proviso' or, his own 'disclosure' though:

    "Since I work, play, and invest in the marketing technology ecosystem, I’m conflicted up the wazoo with many of the companies mentioned in this post as well, as, the data in the chart linked below.  I have done my best to tease out bias.  Please proceed with caution but honestly, I don’t think you need to."

    Some "arse-covering' perhaps? Ha!  :)

    Mergers and Aquisitions in 2012

    I've had lots to say here of MDC Partners too, in the past...

    seekingalpha.com/user/36191/instablog/se...

    With Darren's noting of MediaMind (5%) and that there's a plethora of M&A's 'on the card' in 2012 (unbeknownst to Darren) a 'get-together' with or, an MDC Partners' buy-out of yet another Co having Canadian representation (in DGIT), is certainly not exactly beyond the realms of possibility?

    seekingalpha.com/instablog/36191-looking...

    Gee .... 2012 can't come quick enough, Folkz!!  :)

    Always, on an opinion.

    LOOK $1.29  Up 0.09 (+7.50%)  - finance.yahoo.com/q?s=look

    LC

    ps; 14 Undervalued Stocks Backed By Insider Buying at Seeking Alpha (Thu, Dec 29)

    5. MDC Partners Inc. (NASDAQ:MDCA): Provides marketing communications services to customers internationally. Of the 6 analysts that research the stock, the lowest target price stands at $17, which implies a potential upside of 28.79% from current levels at $13.2. Over the last six months, insiders were net buyers of 35,000 shares, which represents about 0.16% of the company's 22.22M share float.

    MDC Partners Buys Indie RJ Palmer adage.com/article/agency-news/mdc-partne.../

    Disclosure: Long LOOK & excited already re; 2012 & the future ahead.
    .

Back To LookingConfident's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • LookingConfident
    , contributor
    Comments (913) | Send Message
     
    Author’s reply » .
    MDC has featured in many of my instaposts here with Looksmart Director Scott Kauffman also involved with Canada's MDC Partners.

     

    http://bit.ly/AaGYzt

     

    This article "MDC Finally to Achieve Scale It Predicted Back in 2004" from AdvertisingAge's agency editor Rupal Parekh - asks the question:

     

    "What's the End Game for This Now-$1B Company?"

     

    http://bit.ly/HqJfH5

     

    LC
    .
    8 Apr 2012, 09:39 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.