An ad network across the various properties operated by IAC sets its sights on advertisers willing to pay well to reach affluent consumers.
The companies may break up into five separate ones, but lucrative CPM rate potential will hold IAC’s websites together.
Plans to push more data from Citysearch, Match.com, TicketMaster, and other IAC properties into an ad platform promises lofty returns. AdAge said the ad inventory that could be worth $1 – $1.50 CPM outside of IAC would be valued at $6 – $7 CPM if IAC can manage to sell it directly, as opposed to letting an outside network do that.
Much of IAC’s ad revenue comes from a deal with Google. Search advertising on Ask.com serves as the golden goose, leaving 24-karat eggs in IAC’s quarterly budget. Google offers enough profitability that Yahoo decided to make a deal with the company to handle Yahoo search ads.
Integration of advertising continues to progress at IAC. By connecting all of their sites on one platform and mining all of that data, the company hopes to make a stronger push for the business of deep pocketed advertisers willing to pay a premium to reach an affluent audience.
Simple economics makes this a smart play for IAC. The customers for the sites in question likely aren’t being hindered by gas prices and inflation as dramatically as a middle-class site visitor. They have the money to spend.
When we talked with Ask.com in March about likely changes with the search engine, it was hinted that women would be a focal point for ongoing efforts in reaching an audience. Ask’s IAC parent appears to be tuning that interest upward by income.
