An advertising watchdog’s report found dozens of claims that it says were false and deceptive. Wal-Mart blames suppliers.
The company also says it will buy an online display advertising firm.
ValueClick Inc., a provider of online marketing technology and services that operates comparative shopping sites Smarter.com and PriceRunner.com and the Commission Junction affiliate network, reported today that second quarter revenue increased 25.6% year over year to $125.1 million from $99.6 million for the same period a year ago.
ValueClick also reported for the three months ended June 30:
• Revenue from the company’s technology segment grew to $9.1 million, up 19.7% from $7.6 million in 2010.
• Revenue from the media segment grew 36.1% to $43.0 million, from $31.6 million in 2010.
• Revenue from the affiliate marketing segment increased 13.6% to $32.6 million from $28.7 million for the previous year.
• Revenue from owned and operated web sites was $40.6 million, up 26.9% from $32.0 million a year earlier.
• Net income was nearly $17.0 million, up 41.7% from$12.0 million a year earlier.
ValueClick also said today that it will buy online display ad vendor Dotomi for $295 million, 55% of which will be cash and the rest ValueClick common stock. Dotomi will become a wholly owned subsidiary of ValueClick.
"Our momentum continued in the second quarter, as our investments to expand our growth profile and addressable markets continued to pay off," says Jim Zarley, CEO of ValueClick. "Our unique combination of traffic, data, optimization and services is resonating in the marketplace, and Dotomi will add direct advertiser relationships and strategic capabilities that will position us further as a powerhouse in both branding and performance-based digital marketing."
For the six months ended June 30, ValueClick reported:
• Total revenue was $241.6 million, up 23.7% from a year earlier, when revenue was $195.3 million.
• Affiliate marketing revenue was $67.1 million, up 15.5% from $58.1 million a year earlier.
• Owned and operated web site revenue was $78.5 million, up 31.1% from $59.9 million a year earlier.
• The technology segment had revenue of $17.2 million, up 11.0% from a year earlier, when technology revenue was $15.5 million.
• The media segment had revenue of $79.2 million, up 26.9% from the year-earlier period, when media revenue was $62.4 million.
• Net income was $33.8 million, up 1.5% from $33.3 million a year earlier.