principal services and our markets
We are a media company engaged in developing high-value branded websites to service consumers for products and services. We intend to acquire businesses in this segment of the market where the Company finds synergies with its core platform and business. The market for lead generation services and e-commerce websites and communities is growing as companies are looking to advertise online and find more yield through these channels from their advertising dollars. In a world where consumers are spending a significant amount of time online, companies are looking at ways to provide effective online advertising. Widely recognized companies providing similar services to consumers and advertisers like Internet Brands and InterActiveCorp (IAC) have shown that the market is still in early stages of what will be explosive growth in online advertising and e-commerce.
The online advertising market is a $30 billion industry in the United States alone and is expected to grow to $45 billion by 2014, according to the Internet Advertising Board's June 2011 report. The primary growth driver is the medium's ability to buy, sell and measure based on advertising performance. The purest form of measurable performance is customer acquisition, also known as lead generation, where advertisers pay for a targeted sales lead. This segment represents approximately 5% of the total online advertising market and is largely comprised of small competitors that lend themselves to consolidation, aggregating to a potentially substantial share of the market.
The market is currently highly fragmented, due in part to the low barriers to entry and minimal requirements of capital and technology. Thousands of boutique-sized firms focus on one or more segments of online advertising. Industry growth, along with innovation in technology, fuels ongoing expansion in the revenue of smaller firms.
Many successful smaller firms are interested in consolidation with other successful firms that have complementary skills and clients. Execution of our growth strategy will rely on bringing together firms with solid management that can mutually benefit from offering a wider set of services to win and retain larger and more profitable clients.
Boutique-sized Internet marketing firms with less than 50 employees typically provide localized services to customers tailored to specific needs. However, these smaller firms are looking for growth opportunities, and are often vertically deeper in their respective industries than their localized businesses can support. We will source, target, and acquire firms that have high profile and long-standing business relationships, and are run by solid management teams with proven track records. There currently exists many such firms in the E-commerce, Finance, Healthcare, Insurance, and Consumer Services verticals, hence our focus on these industries.
The online advertising market's rapid growth is a key tailwind for success in a buildup strategy. Lead Generation revenue monetizes Internet traffic and is an essential component of today's online merchants and service vendors. Our consolidation presents a unique growth and value creation opportunity for best-of-breed specialist firms to expand to a wider audience and customer base.
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