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The rapid growth of ad networks is easy to figure out, says Jordan Rohan, founding and managing partner of Clearmeadow Partners at the OMMA Ad Net event in Los Angeles: Big profit margins.
Looking at some mid-level publicly-disclosed financial results shows a 47.3% gross margin for Interclick; 47.6% for Burst, and 45.0% for ValueClick.
“At the end of the day you are
giving them half of you ad budget,†says Rohan.
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Wayne Friedman is West Coast Editor of MediaPost. You can reach Wayne at wayne@mediapost.com.