ExactTarget CEO on the Future of Advertising

When General Motors made the decision to stop spending money on Facebook ads last week, it underscored concerns about the long-term potential of Facebook's main advertising business. However, “Mad Money” host Jim Cramer still thinks the advertising world will be doing more and more business online.

“Don’t let the performance of the botched Facebook IPO fool you,” Cramer said. “There’s still a huge transformation happening in the world of advertising. A massive migration of ad dollars away from traditional media — print, radio, TV, the kind of advertising that would be at home on an episode of "Mad Men" — and towards the Internet with a big emphasis on social media and mobile.”

In turn, Cramer highlighted ExactTarget. From its headquarters in Indianapolis, ExactTarget provides on-demand email marketing and one-to-one digital communication software solutions. To help its clients make the best use of new media, Cramer said the company has recently added social and mobile applications, too.

When ExactTarget became a publicly traded company on March 21, its stock popped 32 percent on its first day of trading. Since then, the stock has pulled back. Cramer thinks it’s still pricey, though, being as it currently trades at about 5 times forward sales with no profits yet. So while it’s very speculative, Cramer said it has a lot of growth and reported a strong first quarter as a public company that included a 45.7 percent year-over-year increase in revenues and better-than-expected guidance.

Cramer wanted to learn more about ExactTarget, though, so he welcomed CEO Scott Dorsey onto Tuesday’s “Mad Money.” Watch the video to see the full interview.

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