Ask.com parent IAC this week reported a $156.2 million net loss for 2008, or $1.08 loss per share. For Q4 2008, IAC reported $227.4 million in net income, or $1.57 per share. Not counting several write-downs for underperforming assets, adjusted net income came in at $265.5 million for the year, of which $249.6 million was reported in Q4 alone.
Media and advertising revenues, which include Ask.com, Dictionary.com and Citysearch, fell 19 percent year-to-year to $183.7 million. IAC attributes that to a "de-emphasis of relationships with certain partners," as well as fewer overall queries. It was offset by higher revenues per query, however.
The company said search ad prices dropped 8 to 12 percent during the period, and it expects media and ad revenue to decline by more than 20 percent this quarter.
Instead of attempting to take on Google head-on, Ask.com will follow a vertical search strategy, which kicked off last month with deal where Ask will power the search experience on NASCAR.com, provide a NASCAR toolbar, and sponsor a car. IAC plans to roll out from 8 to 10 similar relationships this year.
The Original Search Marketing Event is Back!
SES Denver (Oct 16) offers an intense day of learning all the critical aspects of search engine optimization (SEO) and paid search advertising (PPC). The mission of SES remains the same as it did from the start - to help you master being found on search engines. Register today!