Interclick’s Katz Discusses Ad Network’s 84% Year-Over-Year Revenue Growth

interclickInterclick reported on Tuesday a record Q3 2010 and announced that founder/president Michael Katz will assume the CEO title. Highlights from the earnings release include 84% year-over-year revenue growth and a 68% increase in gross profit to $12.2 million. Read the earnings release (PDF). Reuters reports that the company is expecting Q4 to be even better than current Wall Street expectations. Read it.

Interclick’s Katz discussed the company’s most recent quarterly results. To what do you attribute the higher, interclick campaign revenue from both existing and new clients?

MK: In Open Segment Manager (OSM), we have created industry leading, data valuation capabilities that enable us to create successful campaign executions, develop customer segmentation strategies, as well as provide detailed analytics throughout the campaign lifecycle. Because of our ability to offer a full scale solution, new and existing clients have allocated higher budgets our way.

How much is the use of data and exchanges helping drive your business?

Both inventory and data exchanges have helped improve operational velocity but access does not ensure success. Successful execution requires building the technological, analytical, and operational capabilities to create the optimal combinations of data and inventory. So it’s just as much about the tools as it is the raw materials.

Does interclick’s results prove that the ad network model is alive and well?

We need to think about the industry a little less black and white. For some reason, you can be either a DSP or an ad network and nothing in between, which has actually created more confusion in the marketplace rather than simplifying it- which isn’t overly productive. I actually can’t listen to another ad network vs DSP panel, I can’t see another red t-shirt. In all seriousness however, the industry is evolving and everyone agrees that the simple network arbitrage model is dying and is being replaced with a more sophisticated and transparent solution. In some cases, that’s where the DSPs come into place, in other cases that’s where the supply chain-focused companies like interclick have continued to excel. The industry is evolving, or at least trying to and the companies that can add the most value for the client will be the ones that are successful.

By John Ebbert

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