tchannon

Why Microsoft Should Drop the Yahoo Bid and Buy ValueClick

Can you provide more specifics to the strategic advantages of MSFT buying VCLK? I will be honest, I have VCLK shares and would love to see $30, but you do not touch on what VCLK can really bring to the table for MSFT to prompt the stroking of a $3B check.

Has ValueClick Cried Wolf Too Often?

Well, I do not have exact figures and that exact data would be impossible to retrieve as many CJ publishers would not share.

However, you can get a great feel for the landscape by searching Google for various terms and if you are familiar with the CJ linking structure, you will note that in many cases 25%-75% of the ad slots are CJ affiliates. Sometimes it is more or less depending on guidelines of the advertiser, but CJ affiliates will often rely heavily on Google and other paid search marketing to drive traffic.

It is not to say Google could not realize more revenue by going direct to CJ and use the pay-per-performance offers. However, Google is already realizing a fair amount of revenue that is derived from the CJ network.