‘The ad tech sector looks an awful lot like a bubble that just popped’ – Business Insider

It has been a rocky few months for the ad tech sector.The overall value of public ad tech company stocks fell 12% in the first quarter, according to tech investment bank LUMA Partners. Of those companies who underwent the high-profile IPO process, many – such as Tremor Video, Rocket Fuel, and Millennial Media – while growing revenue, also notched up huge multi-million dollar net losses in the last financial year ($23.5 million, $64 million, and $149 million, respectively.)

The sector has been fraught with layoffs – such as 11% of Rocket Fuel’s workforce being cut, and 10% of Fiksu’s staff being axed, both in April.Facebook has dialled back its FBX ad exchange, with disastrous consequences for the dozen or so companies that were its main suppliers of ad clients”.