Commentary

Ad nets business sense

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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