Wall Street may have learned a lesson on Monday after the ad network ValueClick missed its earnings: not all advertising companies are created equal. Google (DoubleClick), Yahoo (Right Media),
Microsoft (aQuantive and AdECN), WPP Group (24/7 Real Media) and AOL (Tacoda) may have all made big-money online advertising purchases, but that doesn't guarantee that ad network leftovers like
ValueClick--at one time linked with a move to several of the companies mentioned above--are going to crush earnings.
Quite the contrary: ValueClick stock dropped off 19% on Monday after the
company's under-delivered in the second quarter. The culprit was its controversial lead-generation business, which technically refers to the use of online promotions to drive ad sales-think "Free
PS3!" or "Free Vacation!" ads. For one thing, the Federal Communications Commission is investigating the lead-generation businesses of ValueClick and others for unfair and deceptive practices.
Take note: some companies may remain independent for a reason because larger firms aren't really interested in buying them.
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