Good quarterly results for DoubleClick media branch

Global Media, the DoubleClick business unit that engages in the sale of online advertising space, says it has converted $ 27.2 million in the fourth quarter; 22 percent more than in the previous quarter. The results are surprising, as total Internet advertising expenditure in the US has dropped sharply

Global Media, the DoubleClick business unit that engages in the sale of online advertising space, says it has converted $ 27.2 million in the fourth quarter; 22 percent more than in the previous quarter. The results are surprising, as total Internet advertising expenditure in the US has dropped sharply.

DoubleClick said that traditional advertisers in the fourth quarter advertised well on the internet. CEO Kevin Ryan said in the Wall Street Journal that the advertising market is already the low point in his opinion. An additional factor is that the figures from the European media branch, which will soon be officially in the hands of the German AdLink, are now included in the calculations. Here too, according to Ryan, there was "strong growth".

The figures were well received by analysts in America. DoubleClick is seen as the premier independent advertising network in North America and the figures from this agency are seen as indicative of the entire online advertising market. Developments in this sector, as previously known, are not particularly favorable. The first nine months of the year, spending fell by eight percent.

Apart from the favorable quarterly figures, DoubleClick 2001 will therefore go down in the books as a bad year for internet advertising. From the fourth quarter of 2000, the turnover from the sale of online advertising space has dropped further each quarter. The total annual turnover of Global Media comes to 129 million dollars. That amounts to a drop of no less than 49 percent compared to 2000. In the fourth quarter, turnover was even 55 percent lower than in 2000.

The other activities of the company, the data and software divisions, could not compensate for these developments. The total loss of DoubleClick in 2001 rose from 156 to 266 million dollars.