It looks like Vonage, which has been embroiled in a couple patent suits, is on track to spend a heckuva lot less on online ads than the $185 million it spent in '06
It looks like Vonage, which has been embroiled in a couple patent suits, is on track to spend a heckuva lot less on online ads than the $185 million it spent in '06. Among the biggest online ad spenders last year, Vonage has fallen steadily from that lofty position since January. According to TNS Media Intelligence monthly data reported by ClickZ, Vonage spent about $26.2 million thus far through June, dwindling its spending as the year's gone on.
Vonage was told in April it would be barred from acquiring new customers, as part of a U.S. District Court in Virginia patent suit decision in which Vonage was found guilty of violating Verizon's VoIP patents. At the time the broadband phone firm was granted a temporary stay allowing it to continue to round up new customers.
Now it's back in the news as decisions have been against the firm made this week in the Verizon case, as well as another patent suit brought by Sprint Nextel. To be brief, the earlier Verizon decision was upheld. As for the Sprint situation, Vonage was found to have infringed on six of the telco's patents, and has to pay $69.5 million in damages and patent fees for future use of Sprint's patents. It also has to pay Verizon for use of its patents.
Vonage says it will appeal the Sprint decision, and claims the Verizon decision will have no negative effect on its business.
Sure, the company seems to spend a lot of money on TV ads, but the huge slash in online advertising (through networks, lead gen and affiliate marketing, that sort of thing) is striking. Last June the firm spent $13.6 million online; this June it spent about $2.4 million, according to TNS. In January it spent almost $7 million, and in February over $10 million.
ClickZ Stats shows TNS didn't even list Vonage in the top 50 advertisers by media spend this March, but the firm spent over $22 million on online ads the same month last year.
I'd assume these lawsuits are cutting into the ad budget, whether the firm is reallocating its spend or not.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Sept 5 to take advantage of Super Saver Rates!
Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
September 17, 2014
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT