AdColony shuts down AdMarvel, 125 jobs cut
Mobile video ad company lets go 20% of workforce as it refocuses business on programmatic
AdColony has announced that it will lay off 125 staff in a bid to refocus its business away from mediation and ad-serving towards programmatic ads.
According to AdExchanger, these job losses amount to more than 20% of the mobile video ad company's workforce.
The company has said that it will close most of AdMarvel, the mobile ad tech firm it acquired in 2010, and what remains will be integrated into AdColony.
This news follows on from previous efforts to reduce the workforce, with 100 job losses in July this year.
AdColony CEO Will Kassoy told AdExchanger that the plan had been for a "softer transition" rather than redundancies but that "advertisers aren't looking to us for ad serving and mediation anymore". He detailed the decision further in a blog post.
"The key things our partners are looking for is different today than what it was three or four years ago," he said. "For example, most publishers are no longer looking for ad serving and mediation help from us. Advertisers are now looking to buy programmatically, and more so than almost anything else, they are looking for direct supply.
"In response to these market changes, we have decided to make a few changes to our business. Specifically we will be shutting down the legacy AdMarvel platform and exiting the mediation, ad serving, and white label tech licensing businesses."