• by Gavin O'Malley  @mp_gavin, May 11, 2011

Unable to plug declining ad revenue, Cella Irvine is out as CEO of About Group. In her place, The New York Times Company has brought in Martin Nisenholtz, its existing senior vice president for digital operations.  

Marking its third straight quarterly loss, About Group saw revenues decrease 10.2% during the first quarter of the year -- to $31.1 million from $34.7 million -- which NYTCO blamed on lower click-through rates and softness in page views.

In particular, "design changes in cost-per-click advertisements served by Google had a negative effect on click-through rates in the quarter," the company said in an earnings report released late last month. "The company expects that to be the case through the second quarter of 2011."

What's more, "the About Group also experienced a moderately negative impact on page views from the algorithm changes Google implemented in the quarter," NYTCO said last month.

By contrast, for the first quarter, NYTCO reported a 6.1% increase in total digital revenues -- from $90.4 million to $95.9 million -- along with a 4.5% increase in digital ad revenues from $80.0 million to $83.6 million.

Along with then-chief digital architect Ron McCoy, Nisenholtz helmed About Group for a brief period in 2008 -- between the time that former CEO Scott Meyer left in February of that year and Irvine took the reins in late July.

Prior to About, Irvine served as chief administrative officer of Digitas from 2005 to 2007, where she was responsible for a range of functions, including finance, information technology, mergers and acquisitions, human resources, legal, communications and diversity.

That experience, along with 20 years in the publishing industry, Irvine told Online Media Daily in 2008, made her uniquely qualified to head up About Group.

Before Digitas, Irvine spent time at Hearst, where she was responsible for general management of all aspects of Hearst New Media Publishing, and Microsoft Corp., where she served as general manager of the now-deceased city guide New York Sidewalk.

Nisenholtz said in a memo to staff issued Wednesday: "We appreciate the service and dedication she has brought and wish her well in the future."

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