Automotive marketing services firm Autobytel Inc. recently reported a net loss of $799,000 for Q309, partly due to discontinued operations. Revenue was down $17.3 million from Q308, with auto lead referral revenue down 25 percent. Advertising revenue was comparable to 2008, at $1.6 million.

“While the US Government sponsored `Cash-for-Clunkers’ incentive program was a real boon to auto manufacturers and dealers, it was somewhat of a mixed blessing for Autobytel,” said Jeffrey Coats, Autobytel’s President and CEO, in the release. “Although we experienced increased leads delivered per dealer as a result of the program during the third quarter, overall dealer demand for leads decreased, as certain dealers felt they had sufficient volume of customers through increased on-line and showroom traffic.”

Coats also reported that innovative lead products and Web site improvements, as well as ramped up search engine marketing brought Autobytel.com a 30 percent increase in page views, and a 300 percent increase in organic leads from January 2009.

Autobytel curtailed its retail auto lead promotions during the quarter, reduced its auto lead supply costs, increased its use of its own Web sites as lead generators, and decreaed leads from third parties. The result of these cost-saving measure resulted in a Q309 gross profit margin of 35.5 percent, up from 32.9 percent for Q209.

In our continued efforts to provide innovation, in September we began rolling out new lead products designed to better meet the needs of our large dealer customers,” said Coats. “Additionally, during the third quarter we significantly ramped our search engine marketing efforts and implemented several website improvements which resulted in a 30% sequential increase in page views and a 300% increase in organic leads compared to the beginning of the year.”

The Irvine, Calif.-based company owns Autobytel.com, Autoweb.com, AutoSite.com, Car.comsm, CarSmart.com, CarTV.com, and MyRide.com.