Adtegrity Swings To Loss On Effort To Fight Click Fraud In Web Ads

GRAND RAPIDS — Adtegrity.com Inc. (Pink Sheets: ADTY), the Grand Rapids-based provider of internet advertising networks and services, says a transition to systems that are less likely to be victimized by click fraud is hurting its revenue and profit in the short term — but will pay off in the long term.

Adtegrity Tuesday reported a loss of $42,580 for the first quarter of 2015 on revenue of $3.4 million, compared to net income of $158,304 on revenue of $4.2 million for the first quarter of 2014.

“As expected, we experienced a slowdown in the first quarter related to our previously announced platform transition,” said Adtegrity president and CEO Scott Brew. “The second quarter is seeing further reductions in revenue and profitability related to our effort to provide a fraud-free, high-quality advertising environment for our clients. So-called ad farms, which can artificially inflate a site’s traffic, have made it critical for us to be proactive in ensuring the accuracy and validity of our impression counts and other data. As a result, the company is incurring significant expense in partnering with industry leading fraud fighters, both in a pre-bid fashion and also in post-bid analysis.”

But Brew added: “At the same time, our investment in sales capacity during the last two years is showing strong signs of sustainable growth. While we expect continuing pressures on revenue in the second quarter, we look forward to steady improvement through the rest of the year.”

Adtegrity reported serving more than 27.5 billion ad impressions during the first quarter, resulting in 15.6 million clicks and 641,648 conversions for Adtegrity advertisers.

Founded in 1999, Adtegrity currently delivers billions of advertisements across thousands of top-tier websites each month. For more information, visit www.adtegrity.com.

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