UPDATE 1-IncrediMail says Google restores ad deal; shares rise

martedì 22 gennaio 2008 19:14

(Adds comments from CEO, background; updates share movement)

By John Tilak

BANGALORE Jan 22 (Reuters) - Shares of Internet content company IncrediMail Ltd MAIL.O rose as much as 32 percent Tuesday, a day after it said Google Inc (GOOG.O: Quotazione), its biggest customer, restored an advertising service partnership between the two firms.

"We have been reinstated and revenue is flowing back again," Chief Executive Yaron Adler said by phone.

On Jan. 11, IncrediMail said it got a notice from Google stating that the Web search giant decided to stop the partnership, which is called AdSense. Before Tuesday's gains, IncrediMail's stock had fallen about 30 percent since the news.

The Tel Aviv, Israel-based company, whose main product is its namesake e-mail service, had said it was clarifying the matter with Google and was exploring alternative relationships with other vendors.

Adler declined to say why Google, which contributes about 40 percent to IncrediMail's revenue, decided to reinstate the relationship, or why the AdSense partnership had been previously discontinued.

AdSense enables Web site publishers to display relevant ads on their sites and earn money. The ads are administered by Google and generate revenue on either a per-click or per-thousand-impressions basis. Adler said that Google's decision to stop the partnership had nothing to do with click-fraud -- involving boosting the number of clicks in order to increase the amount the company can charge the search provider -- as some investor Web sites and blogs had speculated.

"I've heard the rumors myself. There hasn't been click-fraud or anything of that sort," Adler said.   Continua...