Demand Media Notes Q4 Results
Demand Media results shed light on revenue sharing, eNom results.
A few days back Demand Media noted fourth quarter results. The firm eked out a modest profit in the quarter, but expects to return to losses going forward.
You can read the complete details here, but here are some interesting numbers:
Revenue Sharing: In Q4 its network of client web sites (which would include parked pages) generated 3.866 million billion page views with an RPM of $3.11. But the firm noted that its RPM excluding traffic buyout costs (ex-TAC) was $2.25.
The firm states “Revenue ex-TAC is defined by the Firm as GAAP revenue less traffic buyout costs (TAC). TAC comprises the portion of Content & Media GAAP revenue shared with the Firm’s network clients.”
So as stated by this definition, of the $3.11 generated per thousand page views, only $.86 was shared with publishers. This seems very low, but I’ve contacted Demand Media for an explanation and will update accordingly.
Changes in RPM: The gross RPM on client web sites was down 22% compared to Q4 2009. The RPM on Demand Media’s owned and operated network was up 36%. Of course, a lot of Demand’s owned and operated revenue comes from actual web sites such as eHow.
eNom Growing: Registrar revenue for 2010 was $100M, up 10% compared to 2009. Counting all of Demand Media’s registrars (eNom is the biggest), it had 11 million domains under management a the end of 2010. That’s up from 9.1 million at the end of 2009.




