ValueClick’s rebrand into Conversant Inc. shows signs of bearing fruit, with the company’s first-quarter financials pointing to a healthy increase in earnings.
Revenue from Q1 of 2014 rose 8% year on year to hit $145.9 million as the digital advertising giant welcomed its highest quarterly revenue growth in four years.
This was boosted by an increase in earnings across both affiliate marketing and digital media, which rose by 11% and 7% respectively. In Q1 2014, business from Conversant’s affiliate wing amounted to $42 million, up from $38.3 million in Q1 2013, while digital media upped its financial contribution from $96.3 million to $103.5 million over the last quarter.
The effect of rebranding
One of very few areas where Conversant reported a decline was adjusted EBITDA, which dropped by 4% year on year. However, the company has been keen to highlight the influence that its estimated $3 million one-time rebrand from ValueClick may have had on the figures.
Conversant also stressed the impact of its $1 million acquisition of digital video technology firm SET Media, which was completed back in February 2014.
Representing one of Conversant’s latest investments in technology for video advertising, SET Media is expected to help the company add what it describes as “critical targeting capabilities” to its personalisation platform.
Conversant believes this is a move which will further strengthen its capabilities in personalisation and reaffirm its commitment to the flourishing video advertising market.