Opinion ID: 4036586
Heading Depth: 3
Heading Rank: 1

Heading: LeadClicckʹs Busineess Model

Text: Untill ceasing o operations in 2011, LeeadClick o operated an n affiliate‐‐ marketiing networrk to proviide adverttising in in nternet com mmerce. L LeadClick arrangeed for adveertising forr its merch hant clientss by conneecting them m to third‐ party pu ublishers ‐‐‐ affiliatess ‐‐ who ad dvertised th he merchaantʹs produ ucts. The affiliatees advertiseed produccts in a variety of way ys, includiing email m marketing g, banner ads, search h‐engine p placement,, and creatting adverttising web bsites. LeadCliick manag ged the affiiliate netw work throug gh trackin ng softwaree, referred to as ʺHitP Path,ʺ that would ʺtrrack the flo ow of traffiic from eacch individual affiliatteʹs marketiing websitte to the m merchantʹs w website wh hile remain ning invisible to the consum mer.ʺ J. App. at 986 ¶ ¶¶ 120‐21. ‐ 5 ‐ In 2011, LeadClick employed a staff of eight to ten people in its ʺeAdvertisingʺ division. Some of those employees worked as affiliate managers, managing relationships with affiliate marketers, while others worked as account managers, managing relationships with merchants. Affiliate managers were responsible for scouting and recruiting new affiliates, researching affiliates, and matching affiliates with particular merchant offers. LeadClick would review and control which affiliates were selected to provide online advertising for each merchantʹs offer. Independent from its eAdvertising affiliate network business, LeadClick engaged in ʺmedia buyingʺ by purchasing advertisement space for banner advertisements from well‐known websites. After LeadClick purchased media space, it would resell the space, sometimes to affiliate marketers, at a markup.