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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
  • Search Marketing (DIRECT SEARCH) Is Looksmart's New And Exciting Business. 0 comments
    May 2, 2012 8:02 AM

    Search Targeting/Retargeting is a unique variation for marketers to use and already there's many consider this to best suit them to easily reach those people who are termed as being an 'in market' users.

    Audiences likewise, can also be found (@ scale) where purchase intent derived from search engines like Google or, Yahoo/Bing, has recently been shown.

    And as Ron Elwell-CEO and founder of Swoop points out (in his great article @ Adotas), that the ROI advantage are there for "BIG BRAND" marketers and publishers, to both get to utilise.

    < marketing continues to be the Borg that is slowly subsuming the universe of digital advertising. The answer as to why this is happening is clear-it simply works. It delivers measurable ROI and provides clear attribution. With a user declaring his or her interest & intent, the value proposition of matching a marketer, who believes they can fulfill that interest, to the consumer is straightforward and well proven.>

    Looksmart (who offer a unique, global CPA/CPV 'one' marketplace based solely on 'user intent'- being provided to Looksmart by the main search engines, has now reported their Q1 earnings just today. The company's Revenues (reported in "comprehensive" or, percentage/margin income received), will not excite the market. But I beg to differ.

    In an interesting thread today (Yahoo! Finance), I've just been advised (from a Looksmart customer) that "I earned $3.65 on your one click."

    Publishers, do need to be aware: Re: Looksmart Coupon

    In my reply, I point out (that I feel) Looksmart continue to be deceptive.

    1 - These CPA clicks are keenly bid for. (Across the marketplace)

    2 - Looksmart (in still declaring a "metric" rather than 'breaking out' the actual CPA/CPV component of it's earnings) is (I feel), 'pulling the wool over' investor's eyes. (It's clear deception)

    By stating that 'Total paid clicks for the first quarter of 2012 were 101 million and Average Advertising RPC for the first quarter of 2012 was just, $0.036'. - LookSmart Reports First Quarter 2012 Results

    They are clearly 'bundling in' the total impressions (exposures) had and then averaging a RPC out, accordingly. - It is my strong feeling that a Cost Per View (CPV) exposure will still attract a minimum (yet attractive to advertisers) payment 'in the pennies' that will all get to 'add up', for the company.

    Bearing in mind that the stated Q1 Traffic acquisition costs (TAC) for LookSmart's Ad Networks decreased to 51%.

    Or, what I feel is being paid back to the Search Engines-to cover both their own publisher network 'clicks and or, CPV impressions' but also the 5 billion daily in search Data on users.

    And all coming from gross "comprehensive income" revenues of $3.64M, that the company declared for the period.

    Meaning, if this was a 'flat' 20% commission, then the total advertisers' 'spend' for Q1, would be in the region of ($3.64M X's 5) some $18.2M. This represents an annual revenue run rate of some $90.8 million.

    Incidentally and no matter how you may want to look at this, with TAC @ 51% on Looksmart's advertising revenues of $3.64M, we see that the gross margin of $1.79M now tells us that on $18.2 million, there is an incredible, 9.84% of engagement.

    So really, there's ten users clicking on a Looksmart marketplace targeted Ad from advertisers (or, near on) per every 100 impressions!

    HMm? Sensational or, what??

    Its a Unique Offer. (Where context/content is unimportant in targeting users - across a ONE, global marketplace.)

    Always, only an opinion.

    LOOK: On May 1: $0.95 Up 0.03 (+3.25%)


    ps; Account Manager@ LookSmart Los Angeles, CA

    LookSmart, one of the founding pioneers of search marketing, is expanding its digital presence and reach via an integrated campaign management platform targeting audiences across search, display, video and mobile.

    LookSmart is the largest independent search company processing over 5 Billion search queries a day that drive millions of high quality online visitors and conversions for advertisers.

    Through its advanced platform, LookSmart will provide advertisers and publishers with the only independent campaign management solution that integrates and cross pollinates search, display, video and mobile campaigns.

    LookSmart's proprietary data and algorithms analyze and evaluate anonymous consumer behavior to identify receptive in-market digital audiences across premium inventory. LookSmart's agile and scalable targeting platform allows advertisers to provide integrated messaging to consumers throughout the purchase funnel, via search, display, video and mobile, driving brand awareness and sales.

    Disclosure: Long LOOK and so happy to be so, too.


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