Under a realignment being announced today, one division headed by publishing veteran Mary Donahue Quinlan will manage Phase2Media's original business of selling ad space on content sites that don't require registration. The other division headed by Phase2Media co-founder Tom Mannion will sell space on direct-marketing sites that do require users to identify themselves.
As 10-month-old Phase2Media staffs up, each division is expected to have its own sales team of 50 to 70 people and a supervisor.
Mr. Mannion is senior VP-general manager of Phase2Media Direct, the division targeting sites that register users. Clients include online sweepstakes site FreeLotto.com and free auction site Qool.com; a third is close to signing.
There's been tremendous growth in the past six months in advertiser interest in sites that register users and send them targeted ads as consumers become more comfortable with opt-in online promotions, said Richy Glassberg, chairman-CEO.
Mr. Glassberg stressed Phase2Media will work only with sites that do not share users' online registration data with third-party ad servers, such as DoubleClick or CMGI's AdForce.
Online privacy is a hot button right now in the industry.
"We are only representing sites and properties that are adhering to strict privacy policies," Mr. Glassberg said. "We are selling the ability [with Phase2Media Direct] to target the correct ad to the correct person who has agreed to be targeted to. We are not collecting data. We are not tracking data. We don't own the data. We don't share the data. We don't pass the data along."
As for the division focusing on sites that don't require registration, Ms. Quinlan has come aboard as senior VP-ad sales, from general manager of The Wall Street Journal's Weekend Journal. Clients include Web sites of American Greetings Corp., the Associated Press, Hachette Filipacchi Magazines' Elle.com, Dennis Publishing's Maxim and the Sydney 2000 Olympic Games.
The appointment of Ms. Quinlan, once publisher of New Woman and corporate ad sales director for Conde Nast Publications, is in keeping with the company's strategy of hiring people with traditional media sales experience. Ms. Quinlan said online ad sales pose challenges similar to print.
"I will be doing sales and marketing partnerships, which is what I've been doing my entire life," she said. "I just need to learn a few new buzzwords."
In November, Phase2Media received an estimated $10 million investment from Hachette Filipacchi Magazines, Vector Capital and Starwood Capital Group (AA, Nov. 1).