Google, Incredimail renew collaboration

The company's income from its use of Google's AdSense service generated 40% of its revenue last year.

Internet content software company IncrediMail Ltd. (Nasdaq:MAIL: TASE:MAIL) has resumed its collaboration with Google Inc. (Nasdaq: GOOG), after the latter reinstated it as an AdSense online customer.

Last week Incredimail said that Google had unilaterally suspended its use of the AdSense service and had disabled advertising links to search result pages displayed through its account. The company's share crashed 29% following the announcement.

Incredimail's income from AdSense accounted for 40% of its total revenue in 2006 and 2007, and its suspension could have affected its results for the first quarter of 2008. Google's AdSense partnership agreements with companies such as Incredimail gives them a share in revenue from sponsored advertisements returned in search queries.

Incredimail CEO Yaron Adler said, "We are pleased to be able to resolve this set-back so quickly and in such a positive way. Google’s co-operation in re-instating our account makes us more optimistic than ever regarding the potential of the search business."

Published by Globes [online], Israel business news - www.globes.co.il - on January 21, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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