Online measurement firm comScore has agreed to acquire digital advertising analytics company AdXpose for a total of $22m, mainly in stock. comScore has also reported a loss for the second quarter, despite a steep rise in revenue.
Headquartered in Seattle with offices in New York, AdXpose measures and analyzes the placement, quality and effectiveness of digital ad campaigns, for advertiser and publisher clients.
comScore says the acquisition will improve its media planning and ad effectiveness measurement capabilities. President & CEO Dr Magid Abraham says the combination of AdXpose with his firm's current products, including Campaign Essentials, will create the opportunity for 'a true digital currency in which advertisers pay for validated digital ad impressions' - as opposed to the current 'ill-suited' Gross Rating Point (GRP) metrics, based on delivered impressions.
Kirby Winfield, AdXpose President & CEO, said the acquisition will allow his company to 'bring new value' to the campaign planning and verification process.
comScore's second-quarter revenue rose 38% to $58.1m, with subscriptions up 36% to $49.5m, and project revenue up 56% to $8.6m - but due to high expenses the firm made a net loss of $8.2m, compared with net income of $800,000 in the same period last year.
comScore is predicting third quarter revenue of between $58.2m and $58.8m, below analyst expectations of $61.1m. The company has also reduced its full-year revenue forecast to between $231.1m and $234.7m, from a previous range of $238.2m-$239.7m.
Abraham says the reduced full-year forecast reflects the cost of the AdXpose acquisition, reduced activity by some clients, and 'exogenous industry circumstances that have stretched sales cycles for several larger customer transactions'. They are also impacted by 'increased concerns as to macroeconomic weakness.'
Web sites: www.comscore.com and www.adxpose.com .
All articles 2006-20 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.