Sizmek monetizes by delivering ads on a CPM or flat rate on behalf of its clients. The company bolsters this service by selling “intelligent products,” including verification or viewability solutions. It also charges for analytics around programmatic data.
“We see roughly 60 billion daily requests where we provide contextual analytics information in real time to the [programmatic buying] platforms we integrate with,” Nguyen said.
While the sale of DG’s television ad business to Extreme Reach relieved Sizmek of its debt burden, the company anticipates, for the next year, an $8 million to $9 million increase in operating expenses.
“When Sizmek was part of DG, we had the benefit of allocating certain corporate functions between [online and television] segments,” said CFO Craig Holmes. These include functions like IT expenses. “With the closing of the sale, all costs are reflected in Sizmek operating expenses.”