Avenue A to Change Name, Contractual Agreements

NEW YORK Avenue A Inc., parent company of Avenue A, I-Frontier and Atlas DMT, said Thursday that it is changing its name to aQuantive Inc. The Seattle-based digital marketing and technology company also said that it plans to modify client contracts within its Avenue A division, which in turn will affect the way the company reports revenue.

The name change, to take effect in March, is meant to create “a corporate identity to encompass all of our brands,” said Brian McAndrews, president and CEO of Avenue A Inc. Founded as an online media agency in 1997, Avenue A Inc. has since expanded to include the Atlas DMT technology business and I-Frontier, a Philadelphia-based interactive agency bought late last year.

“We believe that our new corporate identity will help further define and delineate the separation between the parent company and our individual business units,” said McAndrews, adding that Avenue A Inc. is poised to add future brands to its portfolio.

The company used the root “quant” as the building block for its new name because it represents the idea of quantitative or measurable results.

Separately, the company’s Avenue A online media division intends to revise its contracts with clients and online publishers during 2003, so that direct liability for media purchases will rest with the clients.

Under the terms of its current contracts, Avenue A records as revenue both the cost of the media that it purchases for its clients and the fees that it charges for its services. Because Avenue A has historically served as a principal in purchasing media, and has direct liability for paying publishers for that media, generally accepted accounting principles require Avenue A to report revenue under the gross revenue method.

Under the new contractual terms, Avenue A will record as its revenue only the fees that it charges for services to its clients. This will result in the division posting revenue on a net basis beginning Jan. 1, 2004. The move will standardize Avenue A Inc.’s contractual terms and revenue reporting procedures across its business units.