Advertising technology company Fyber endured a difficult start to 2018 as revenues dropped 41 per cent to $34 million for the three months ending March 31st 2018.
According to Fyber, the revenue decrease can be attributed to three main developments.
First is Fyber’s strategic decision to close down several traffic sources as part of the ‘Keeping it Clean’ initiative launched last year, which has had a short-term adverse effect on revenue.
Second is Google’s ban on charging screen ads format. Previously a highly popular ad format, especially in China, it apparently impacted the high growth anticipated in that region.
Finally, the reorganisation and merging of Fyber’s sales structure focused heavily on training, account transitions and alignment, which reduced the output of the sales teams.
Playin’ the long-game
Profits also came in at a loss of $4.6 million. However, this was a 22 per cent year on year increase from the $5.9 million loss reported the year prior.
“2018 will be a year of investment and setting ourselves up for future wins,” said Fyber CEO Ziv Elul.
“Our merger efforts thus far have been a success. We are confident in our strategy to lead with technology and continue to push towards a clean, fair and transparent ad marketplace.
“While this strategy has an impact on the short-term revenue growth, we strongly believe the investment will pay off.”