AdColony, the mobile advertising company, cut almost 100 jobs last week following disappointing revenue results during a recent earnings call.
First reported by BusinessInsider, the Opera Software ASA subsidiary has restructured in order to focus on its automated and programmatic advertising business. In addition, it seems that AdColony is no longer interested in mobile banner ads but instead wants to focus on rewards-based ads.
Opera Mediaworks acquired AdColony back in 2014, but took on its name in 2017.
One of the problems AdColony has faced is that advertisers prefer to buy ads programmatically as it tends to be a cheaper option. This trend has had effects on the company’s direct-ad sales which decreased 19% last year.
Arguably as the competition heats up, players such as AdColony may be feeling the heat, but the shift is likely to become a more common picture across the ad market and other companies may follow in shifting focus across mobile formats.
Will Kassoy, CEO of AdColony, said:
“We have a plan in place that has allowed us to become the largest mobile ad platform outside of the social ecosystem, and as we continue to execute, we need to be agile, willing to take risks, and hyperfocused on the areas where we can win. The moves we made were part of the larger process of integrating all of the pieces we have at AdColony and ensuring we’re growing the company in a way that specifically fits our vision for the future of the mobile advertising space.”