Commission Junction's Robust Growth Continues; Network Membership, Commissions, Impressions, Click-Through Rates Continue to Surge.Business Editors & Multimedia Writers SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif.--(BUSINESS WIRE)--Aug. 16, 2000 Commission Junction Commission Junction is an online advertising company owned by ValueClick. They are specifically in the affiliate marketing industry. Commission Junction is the largest affiliate network in north America, powering almost 50% of the top 500 web retailers affiliate marketing , the worldwide leader in affiliate marketing Affiliate marketing is a method of promoting web businesses (merchants/advertisers) in which an affiliate (publisher) is rewarded for every visitor, subscriber, customer, and/or sale provided through his/her efforts. , today announced strong operating results for the six months and second quarter ended June 30, 2000. Investments by Internet incubator idealab!, Hikari Tsushin, Japan's leading information-technology and telecommunications service In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. distributor, QuestMark Partners L.P. and Thomas Weisel Partners Thomas Weisel Partners Group, Inc. (NASDAQ: TWPG), often shortened to just TWP or TWeisel, is a U.S. middle-market and growth focused investment banking firm based in San Francisco, California. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and a strategic partnership with Road Runner road runner: see cuckoo. Road Runner thrives on outwitting Wile E. Coyote. [Comics: “Beep Beep the Road Runner” in Horn, 105] See : Cunning Road Runner , a joint venture of Time Warner (NYSE NYSE See: New York Stock Exchange :TWX (TeletypeWriter eXchange Service) A U.S. and Canadian dial-up communications service that became part of Telex. In 1971, the Bell System sold TWX to Western Union. TWX transmitted 5-bit Murray code or 7-bit ASCII code at up to 150 bps. See Telex. ), MediaOne (now AT&T), Microsoft (Nasdaq:MSFT MSFT Microsoft (stock symbol) MSFT Movimento Sociale Fiamma Tricolore (Italy) MSFT Multi-Stage Fitness Test MSFT Master of Science in Family Therapy MSFT Macalester Students for Fair Trade ) and Compaq (NYSE:CBQ See traffic engineering methods. ), were highlights amid Commission Junction's dynamic six-month and quarterly growth. Commission Junction added 581 new online merchants and 167,487 affiliate content sites to its affiliate marketing network in the first six months of the year. At the close of the second quarter, the company's network included a total of 980 online merchants and 234,519 affiliate content sites, up 152 percent and 214 percent, respectively, from a total of 383 online merchants and 78,421 affiliate sites at year-end 1999. The total number of network affiliations exceeded 1.9 million. "We achieved significant gains in each of our key business metrics, added major online merchants and affiliate sites to our expanding network, and signed strategic partnerships with some of the industry's top players," said Lex See yacc. 1. (tool) Lex - A lexical analyser generator for Unix and its input language. There is a GNU version called flex and a version written in, and outputting, SML/NJ called ML-lex. Sisney, Commission Junction's chief executive officer and co-founder. "Our torrid network and revenue growth underscores the reach, efficiency and effectiveness of our distinct performance marketing model." Strong Metrics Growth Commission Junction achieved impressive quarterly growth in each of its key business metrics: -- Affiliates earned almost $5 million in second-quarter commissions, up 216 percent from the first quarter of 2000. -- The company's second-quarter revenue rose 216 percent to $990,744, vs. the first quarter of the year. -- Commission Junction generated more than 2.3 billion impressions in the second quarter (times that its merchants' promotional materials were viewed on Commission Junction's affiliate sites), an increase of 205 percent from the first quarter of 2000. -- The company signed up 581 new online merchants in the first and second quarters, a jump of 152 percent from the end of 1999. -- The number of new affiliates rose 214 percent in the first and second quarters to 234,519, up from a total of 78,421 online content providers in the first quarter of 2000. -- Commission Junction's network affiliations topped 1.9 million. Sisney added, "Our click-through rate The number of times a link on a Web page is clicked compared to the number of times it is displayed. Advertising royalties paid to Web sites are often based on click-through rate (CTR), and the amount paid per click-through is considerably higher than the cost of an ad that is displayed is running better than 2.9 percent, more than nine times the estimated .3 percent click-through rate for traditional banner ads (a). Commission Junction also boasts an outstanding 2.9 conversion rate." Venture-Capital Investments In April 2000, Commission Junction received a $40 million investment from idealab!, QuestMark Partners L.P., Hikari Tsushin Inc. and Thomas Weisel Partners LLC. This investment represents Commission Junction's second round of venture-capital financing. In connection with the financing, idealab!, a leading creator and operator of Internet businesses, agreed to promote Commission Junction's affiliate marketing solution to its network of operating companies. Following the funding, Commission Junction added the following individuals to its board of directors: Bill Gross, founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of idealab!; Stephanie Streeter, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of idealab!; and Thomas R. Hitchner, Questmark general partner. New Products and Services Rolled out in June, CJ 5.0 is the latest version of Commission Junction's Web-based affiliate marketing solution. CJ 5.0 offers features and functionality designed to drive e-commerce for its network of online merchants and affiliate content sites. A comprehensive, turnkey solution, CJ 5.0 matches products and services to content at the consumers' point of interest and manages and audits the resulting volume of e-commerce transactions and revenues. Commission Junction acts as the trusted third party In cryptography, a trusted third party (TTP) is an entity which facilitates interactions between two parties who both trust the third party; they use this trust to secure their own interactions. TTPs are common in cryptographic protocols, for example, a certificate authority (CA). between affiliate content providers and merchants, providing a single contract, a uniform set of return dates, a centralized help desk, an advanced serving system, a single ID and password to access the entire network, and a single reporting interface to manage all relationships. CJ 5.0 offers real-time tracking and performance analysis of every product placement and link throughout the network and provides the full flexibility of more than 100 comparative reports for both real- time and scheduled reporting. CJ 5.0 automatically calculates earned commissions and updates the merchant's and affiliate's accounts in real time. Commission Junction then collects all commissions earned by content providers and pays with a single, aggregated monthly check on behalf of all of their merchants. Significant Network Partnership In April, Commission Junction's network growth was bolstered by a partnership with Road Runner, a leading high-speed online cable service. The alliance, aimed at rapidly advancing Road Runner's position as a major player in the $2 trillion e-commerce marketplace, provides subscribers with instant access to online buying opportunities through Commission Junction's merchant partners without leaving the service. As a result of the Commission Junction/Road Runner partnership, subscribers are able to simply point, click and purchase relevant products and services while engaged in content of interest to them. International Growth Expanding its international reach, Commission Junction opened offices in Europe and Southeast Asia. Located in Amsterdam and Hong Kong, these offices enable the company's customers to tap into e-commerce's growing international use and popularity. Although North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. companies make up approximately 82 percent of the worldwide total this year, Jupiter Communications predicts that European and Asian firms will constitute 19 percent and 12 percent, respectively, of the global online ad market by 2005. By offering its service in 11 languages as well as 28 local currencies, Commission Junction holds a distinct advantage in these growing e-commerce markets. Commission Junction boasts 130 international merchants and more than 100,000 international affiliate content sites. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial Sisney summarized: "Our second-quarter results speak for themselves. Our next-generation affiliate marketing model is transforming how businesses sell and make money on the Web. Most of our nearly 1,000 online merchants, including Capital One, Tower Records, Patagonia and Fingerhut, are utilizing our services to drive anywhere from 15 percent to 40 percent in new sales through CJ. "Importantly, our merchants pay only for performance -- tangible results like a sale or lead -- as opposed to spending significant sums of money up front on traditional banner advertising Banner Advertising A common form of advertising on the internet. The banner is an advertisement of 460x68 pixels, usually placed at the top of the page Notes: For an example, just look at the top of a page on almost any popular web site. . In fact, our top- performing merchants realize click-through rates from 17 to 20 times greater and conversion rates from 12 to 17 times better than industry averages on banner ads. "Our e-commerce marketing solution works equally well for our affiliate content providers, like Road Runner. We are enabling our affiliates to carve out to make or get by cutting, or as if by cutting; to cut out. - Shak. See also: Carve a bigger and bigger slice of the global online ad pie, a market that is projected to reach almost $28 billion in 2005 from approximately $4.3 billion last year (b). "Moreover, we do not require our customers to install software or execute exclusive marketing agreements. We are an applications services provider (ASP), which means fast time to market for our customers. New merchants go live in less than a day, compared to six to eight weeks for most solutions." About Commission Junction Founded in November 1998, Commission Junction is the worldwide leader in affiliate marketing that matches online merchant products and services to online content at the consumer's point of interest. Currently handling all aspects of the global network for more than 1,000 merchants and more than 250,000 content providers, Commission Junction audits e-commerce activity, manages all relationships, and collects and pays commissions on sales generated, all at a cost that is lower than traditional online advertising programs. Commission Junction's network includes leading online merchants Excite@Home, Ticketmaster Online-Citysearch, A&E Television Networks and major content sites Road Runner and weather.com. With a staff of 150, Commission Junction has headquarters in Santa Barbara, with sales offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Amsterdam and Hong Kong. For more information, visit www.cj.com. (a) Source: Neilson research (b) Source: Jupiter Communications |
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