Demand Media to Boost Direct Sales Force Via IndieClick Buy

Demand Media said it will acquire ad network IndieClick and social media product developer RSS Graffiti. The firm also said it will expand its existing partnership with Google through which it sells portions of its ad inventory.

Despite reporting a 32 percent year-over-year increase in overall revenues for the second quarter of this year, Demand Media’s net losses widened to $2.4 million during that period, with a loss of $1.9 million in Q2 2010, the company said yesterday in its quarterly earnings report.

IndieClick represents a range of sites in the film, entertainment, music, lifestyle, and fashion categories, focused on 18-34 year old users. Demand Media said the addition should help broaden the size and reach of its direct sales force, and enable it to offer its advertisers access to niche, engaged audiences as they continue to fragment across the web.

L.A.-based IndieClick has existing relationships with publishers including Village Voice Media and Texts From Last Night. Ad clients have included brands such as Vans, Mazda, and numerous entertainment related advertisers.

Meanwhile, Demand Media is expanding its existing relationship with Google, meaning Demand will sell more of its global inventory through the online ad giant’s sales channels, including its AdSense for content network and DoubleClick Ad Exchange. In addition, Demand Media’s properties will be included in Google’s premium ad network, the Google Display Network Reserve.

Finally, Demand Media CEO Richard Rosenblatt said RSS Graffiti will form the cornerstone of its social publishing strategy, enabling it to partner with a range of Facebook publishers overnight. RSS Graffiti enables brands and users to automate posts on Facebook directly from RSS feeds, and plans to offer insights into the types of content brands and publishers should share with their likers on the platform.

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