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Summary:

After all the trouble of breaking apart IAC (NSDQ: IACI) into five separate, publicly-traded entities, the ties between the companies will r…

After all the trouble of breaking apart IAC (NSDQ: IACI) into five separate, publicly-traded entities, the ties between the companies will remain as part of an ad network, AdAge reports. The hope is that IAC will be able to see its current CPMs rise from an average of $1.50 to around $6 or $7 by selling ads across the 63 companies within the five business units, including urban guide CitySearch, time-share business Interval International, shopping channel HSN and Ticketmaster.

Not siblings, but cousins: While these businesses have little to do with each other in terms offering content verticals, there is one unifying aspect: the affluent users they attract. As IAC Advertising Solutions President Rich Stalzer, who handles Ticketmaster, LendingTree and HSN, says, “Maybe we’re not brothers and sisters, but we’re cousins.” He added that by combining the inventory on those sites, along with the 57 million monthly uniques, the company a top 10 player in terms of web ads. In Q1, roughly half of IAC’s $392 million revenue — $216 million — came from media and ad revenue, primarily from Ask’s search-ad deal with Google (NSDQ: GOOG). The ad network its cobbling together has prompted some industry observers to compare it to what Microsoft (NSDQ: MSFT) has done with its internet properties. That, in turn, has led to the inevitable speculation that the Redmond software giant could be looking at IAC as a potential acquisition target, though IAC has declined to touch that one.

  1. So NOT the right company to get into this business. I can give lots of reasons for this but mindset and technology are BIG ones.

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  2. IAC is about the most disfunctional ad sales organization out there. This is not going to help. I have million+/month to spend and I can't get them to call me back.

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  3. Separate and yet together?

    That's poetic but brilliant business move! This way they can pull in together a better portfolio and pitch to potential advertisers, while keeping respective operations/growth strategies separate in each of the clusters.

    @Jeff – IAC is not dysfunctional and it's a very big organization that is making lots of money. I am sure they are beefing up as we speak. Perhaps all they need is to setup a separate support team to digest consumer's feedback better and more efficiently.

    The question I have in mind is why are they focusing on behavioral targeting right now? Is there all there is ahead of the curve for online advertising? We are lacking creativity/innovation in this area, which leads to the following question:

    What's next after behavioral targeting?

    It's going be something exciting!

    Best regards,

    Darren Lee
    http://www.adexcel.com

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