Lara O’Reilly says, “The digital advertising sector is a complex one.

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”.

The ad tech sector looks an awful lot like a bubble that just popped

Business Insider

Sharing is caring