Avenue A Splits Business Offerings

Seattle-based i-shop Avenue A is separating its design and technology functions into two operating divisions, the company said today.

Avenue A’s planning, ad serving and optimization technology products — now sold under the brand name Atlas DMT–have long been touted as the elements that set the three-year-old agency apart from its competition. According to Mike Galgon, Avenue A’s chief strategy officer, the decision to split off Atlas DMT was not made because of financial problems, but because demand for the services had reached a level justifying the move.

The company’s interactive agency division will continue to operate as Avenue A, Galgon said.

The move puts Avenue A in direct competition with DoubleClick. Galgon said Atlas could compete with DoubleClick because Atlas was created by an ad agency for other agencies.

“Atlas is currently in beta with a few agency partners,” said Galgon. Though he declined to name the partners, he said one is a global traditional agency with strong digital capability, and one is an interactive agency which, “like Avenue A, is a specialist in best of breed in the digital space.”