By Rory Gallivan
LONDON--Internet advertising technology group Blinkx (BLNX.LN)
could exit some of its online display advertising activities to
focus on the more lucrative area of video.
Chief Executive S. Brian Mukherjee said on Monday that the
company will try to work out how to use its technology to make its
non-video advertising activities more lucrative, but will divest
these activities to focus on video if this can't be done.
Non-video online advertising rates have been under pressure amid
a rise in "performance" marketing, where online advertising is only
paid for if it results in measurable success, such as people
clicking on adverts, Mr. Mukherjee explained.
Although it started as a specialist in speech recognition and
visual analysis technology that generates advertising related to
online videos, Blinkx has moved into non-video areas through
acquisition. Blinkx doesn't break down figures for revenue from
video and non-video advertising.
Blinkx earlier Monday reported a $24.8 million pretax loss for
the year to March 31, compared with a $17.6 million profit a year
earlier. Revenue dropped 13% to $215 million as gains in mobile
advertising sales were outweighed by declines in desktop
advertising, a trend that has affected the broader online
advertising sector.
Blinkx was founded in 2004, having been part of the U.K. search
software business Autonomy, which is now part of computer company
Hewlett-Packard Co. (HPQ).
Shares at 1119 GMT, down 4 pence, or 10.3%, at 35 pence valuing
the company at GBP140.8 million ($220 million).
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
Subscribe to WSJ: http://online.wsj.com?mod=djnwires