Question-and-Answer Session
Operator
(Operator Instructions) We’ll take the first question from Christa Quarles. Ma’am, your line is live.
Christa Quarles – Thomas Weisel Partners
Hi. A couple of questions. First, I guess, I was pretty positively surprised by the revenue per click increase sequentially and I was just wondering if you could highlight the specific categories of ads that you guys are serving, what percentage of Marchex’ proprietary network is served versus using Yahoo, and then whether you guys will consider CPA or CPL type ads, and then I have a follow up. Thanks.
Russell Horowitz
Sure. John Keister’s going to take a first pass at your question.
John Keister
I guess I would just start by saying that we, from a proprietary advertisers perspective, we’re covering all the major commercially relevant categories so we’re not specifically focused on just finance or just entertainment advertisers, for example. We’re across the board and we’ve got under our own proprietary advertiser base, we’re well [over] 10,000 advertisers on a direct basis.
Russell Horowitz
So when you look at kind of our opportunities to integrate and take more of the inventory, we’ve got good breadth and depth across the board, and then there are verticals where we’re stronger. Finance is an area we’re particularly strong. Technology we’re particularly strong. Travel and health are also areas that we see a lot of strength and momentum in pricing. What we found is, you know, the more [inaudible] of our proprietary inventory we’re able to get to the advertisers, they tend to vote with their bid rates in their budget and we think it’s a very encouraging sign.
You know, we’re clearly focused on the longer-term opportunity of being kind of the predominant monetizer of our own traffic base and so we have very positive third-party relationships to supplement that strategy, but each of these metrics just gives us affirmation that the approach we’re taking is the right one and will deliver us the best balance of growth and defensibility.
Christa Quarles – Thomas Weisel Partners
I guess, you know, if you’re not willing to state sort of which percentage of Marchex’ network is served from [phone] ad network versus other partners, I guess, could you give some indication as to the growth rate, anyway, of what you guys are serving?
Russell Horowitz
To give you a ballpark estimate, I’d say going back a quarter, plus or minus, we had about 20% of the ads in inventory on our proprietary sites and now it’s up to about 30%.
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