Top Shopping Search Company Leads Industry in Browser-to-Buyer Conversion
October 22, 2002 - New York, NY - DealTime Ltd., the leading shopping search engine, today reported that it achieved profitability in the quarter ending September 30, 2002 on record revenues. The Company expects to be profitable and cash-flow positive for the year and to record more than $27 million in revenues, doubling revenues for the second year in a row.
Online retailers will spend $2.5 billion in 2002 to acquire customers, according to a calculation based on data from a Shop.org study by The Boston Consulting Group in association with Forrester Research. DealTime is expanding its share of this market with a scalable business model based on sending ready-to-buy shoppers to its merchant partners while helping its search and portal affiliates monetize their traffic.
"Our financial results demonstrate the value that DealTime delivers to consumers, merchants and traffic aggregators," said Dan Ciporin, DealTime’s Chairman and CEO. "We have solidified the cornerstones of our business: distribution agreements with leading search engines and portals, a strong base of high-quality merchants, and a technologically superior shopping search engine."
Separately, DealTime announced that it recently raised nearly $3 million in a private equity placement from its existing shareholders. The Company will invest the funds to build on its technology and distribution leadership in the shopping search sector.
The number of unique visitors to DealTime has tripled over the past 12 months, making the Company the Internet’s fastest growing shopping directory, according to Nielsen//NetRatings. DealTime is now a top 10 Internet shopping destination, with more monthly unique visitors than most online stores. The Company’s rapid growth rate demonstrates that consumers are choosing shopping search engines to shop the whole Web at once and avoid the hassle of clicking on numerous links to find the information they need to make smart purchases.
Leading merchants, including Office Depot, Kodak, IBM and Eddie Bauer have made DealTime a key component of their online marketing strategy. "Custom-generated analysis shows that visitor to buyer conversion on DealTime referrals is significantly higher than that on referrals from well-known pay-for-performance general search engines and portal shopping channels," said Lisa Strand, Nielsen//NetRatings Director and Chief Analyst, e-Commerce. "DealTime gives shoppers the tools to do their research before clicking through to merchants. This allows DealTime to deliver highly qualified leads to its merchant partners that convert better to sales."
This proven ability to drive sales has helped DealTime grow its U.S. merchant base from some 300 merchants in October 2001 to more than 900 merchants today, including most of the leading online merchants. "DealTime is a top performing distribution partner for our clients, including numerous well known consumer brands," said Stuart Larkins, Vice President of Partner Services of Performics Inc, a leading performance-based online marketing services company. "DealTime has been instrumental in our ongoing effort to drive faster sales growth for our clients while lower their customer acquisition cost."
DealTime has long-term contracts to provide outsourced shopping search services to leading portals including Lycos and AltaVista. The Company also has deep marketing alliances with leading companies in the search and pay-for-performance sector including Google, Overture and LookSmart. These relationships make it more convenient for shoppers to access DealTime when researching purchases, increasing the site’s value to merchants.
"In difficult economic times consumers are even more likely to look for the most efficient and rewarding shopping experience. Merchants are also highly motivated to find a source of high-quality leads - leads that are most likely to convert into sales," added Mr. Ciporin.
DealTime is the world`s leading online shopping search engine, reaching millions of shoppers worldwide every month. The Company was recently named the third largest shopping directory and guide on the Internet, according to Nielsen//NetRatings. Through its Web sites, dealtime.com®, shopping.com, dealtime.co.uk and other affiliate sites (including AltaVista, Lycos and Excite Network), shoppers compare products, prices and stores across the Web. For merchants and manufacturers, DealTime delivers qualified, in-market buyers and lower customer-acquisition costs. For traffic aggregators, portals and other affiliate sites, DealTime provides a powerful search engine and superior shopping tools that enable them to monetize their traffic more easily. For consumers, DealTime provides an easy way to find the right product and choose the right merchant. DealTime Ltd. is a multi-national private company, venture-backed by key strategic and financial partners including Bertelsmann, AOL Time Warner, Bank of America, Bain Capital, Singapore Telecom, and others. DealTime, DealTime.com, the DealTime logo, and "Shop the Whole Web at Once" are registered trademarks of DealTime Ltd.