Company’s intent-driven audience is ideally suited for real-time
access for advertisers
SANTA MONICA, Calif.--(BUSINESS WIRE)--
Demand
Media, Inc. (NYSE: DMD), a leading content & media and domain name
services company, today announced that its selling efforts will be
focused exclusively on the Company’s premium programmatic offering. This
offering makes it easier for advertisers to customize placement,
audience and budget parameters for each campaign. While this decision
will result in the elimination of Demand Media’s premium display
salesforce, the Company will continue to work with a select group of
strategic advertisers to service existing premium display campaigns.
“Our audience is ideal for this type of advertising. They come to our
sites when they are ready to take action, and this move will facilitate
advertisers reaching them at precisely that moment,” said Shawn Colo,
interim chief executive officer of Demand Media. “We see significant
opportunity to enhance our consumer experience through increased
investment in content and product innovation and are actively hiring
across the organization to support this strategy.”
Demand Media’s premium programmatic offering gives advertisers a more
efficient and flexible option for accessing more than 80 million unique
visitors that make up Demand Media’s intent-driven audience across its
owned and operated network. Advertisers now have preferred access to
inventory, flexible pricing options and the advantage of proprietary
audience targeting within more than 3,000 available segments. Demand
Media has the largest Home & Garden audience in the US and is in the top
10 in several other commercial categories.1
1 comScore, December 2013
About Demand Media
Demand Media, Inc. (NYSE: DMD) is a leading digital content & media and
domain name services company that informs and entertains one of the
internet’s largest audiences, helps advertisers find innovative ways to
engage with their customers and enables publishers, individuals and
businesses to expand their online presence. Headquartered in Santa
Monica, CA, Demand Media has offices in North America, South America and
Europe. For more information about Demand Media, please visit www.demandmedia.com.
Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended. Statements containing words
such as may, believe, anticipate, expect, intend, plan, project, and
estimate or similar expressions constitute forward-looking statements.
Statements regarding the Company’s future financial performance are
based on current expectations, estimates and projections about our
industry, financial condition, operating performance and results of
operations, including certain assumptions related thereto. Actual
results may differ materially from the results predicted, and reported
results should not be considered an indication of future performance.
Forward-looking statements involve risks and uncertainties including,
among others: our ability to successfully shift our advertising sales
function from direct sales to a premium programmatic sales offering, and
the impact such shift will have on our advertising revenues, operations
and capital allocations; our ability to successfully establish our
businesses internationally; our ability to complete a separation of our
business into two independent public companies as previously announced
and unanticipated developments that may delay or negatively impact such
a transaction; the possibility that we may decide not to proceed with
the separation of our business as previously announced if we determine
that alternative opportunities are more favorable to our stockholders;
our ability to retain key personnel; changes in the methodologies of
internet search engines, including ongoing algorithmic changes made by
Google as well as possible future changes, and the impact such changes
may have on page view growth and driving search related traffic to our
owned & operated websites and the websites of our customers; our ability
to effectively monitor the quality of search traffic to our undeveloped
websites; the inherent challenges of estimating the overall impact on
page views and search driven traffic to our owned & operated websites
based on the data available to us as internet search engines continue to
make adjustments to their search algorithms; changes in our content
creation and distribution platform, including the possible repurposing
of content to alternate distribution channels, reduced investments in
intangible assets or the sale or removal of content; continued
deterioration in the market capitalization of the Company, which may
result in an impairment of certain intangible assets on the Company’s
balance sheet; our ability to effectively integrate, manage, operate and
grow a crowd-sourced e-commerce website such as Society6; our ability to
manage risks associated with the sale of goods over the internet; our
ability to successfully launch, produce and monetize new content
formats; our ability to compete with new or existing competitors; our
ability to continue to drive and grow traffic to our owned & operated
websites and the websites of our network customers; our ability to
effectively monetize our portfolio of content; our dependence on
material agreements with a specific business partner for a significant
portion of our revenue; future internal rates of return on content
investment and our decision to invest in different types of content in
the future, including premium video and other formats of text content;
our ability to attract and retain freelance creative professionals and
artists; changes in our level of investment in media content
intangibles; the effects of changes or shifts in internet marketing and
advertising expenditures, including from text to video content as well
as from desktop to mobile content; the effects of shifting consumption
of media content from desktop to mobile; the impact of seasonality on
our e-commerce business; our ability to expand our customer base and
meet production requirements; our ability to develop additional adjacent
lines of business to complement our growth strategies; potential write
downs, reserves against or impairment of assets including receivables,
goodwill, intangibles (including media content) or other assets; and
changes in tax laws, our business or other factors that would impact
anticipated tax benefits or expenses. More information about potential
risk factors that could affect our operating and financial results are
contained in our annual report on Form 10-K for the fiscal year ending
December 31, 2012 filed with the Securities and Exchange Commission (http://www.sec.gov)
on March 5, 2013, as such risk factors may be updated in our quarterly
reports on Form 10-Q filed with the Securities and Exchange Commission,
including, without limitation, information under the captions Risk
Factors and Management’s Discussion and Analysis of Financial Condition
and Results of Operations. The Company does not intend to revise or
update the information set forth in this press release, except as
required by law, and may not provide this type of information in the
future.
Source: Demand Media, Inc.