August 18th, according to "the Wall Street journal" website reported that marketers now constantly increasing investment, investment in Internet advertising. But so far, these rising investment has not been able to help the majority of young listed online advertising companies profitable. The Internet advertising company, in recent months the share price plummeted and so.
the Internet advertising company, although not like Google and Facebook can help marketers known to every family, but buy website and Application on advertising space, and online ads. The Internet advertising company, including advertising company Rocket Fuel, automatic purchase online video advertising company YuMe, advertising technology provider Rubicon Project company, mobile advertising company Millennial Media and Tremor Video network video advertising company.
Most of these companies, which have been on the market for the last 18 months, have been trying to attract investors who believe that they can get a lot of opportunities in the fast-growing online advertising market,
said. According to market research firm eMarketer estimates that this year the total amount of global online advertising spending will grow by 25%, while the U.S. market for online advertising spending will account for 39% of the world.
Although the majority of
network advertising company’s revenue is growing, but most are losses, has been unable to profit, some Internet advertising company, loss or even worsening, but also exacerbated the speed more and more quickly. Last week, YuMe announced in 2014 second quarter earnings report, the company’s net loss during the same period doubled to $2 million 600 thousand, but revenue grew by 18%. At the beginning of August this year, Rocket Fuel announced that the second quarter of this year net loss expanded from last year’s $3 million 840 thousand to $9 million 800 thousand, while revenue growth over the same period last year of $70% to $9 million 260 thousand. In addition, another online advertising company Tremor net loss in the second quarter of this year, from $300 thousand in the same period last year, a substantial increase to $5 million 400 thousand, even though its revenue grew by 23% over the same period last year.
network company executives said, the reason is not profitable, mainly because of their excessive investment opportunities for future growth, but also to ensure that they can bring to seize the automation solution to the growing demand for advertising opportunities. For example, the chief executive of YuMe, Jia Yate · (Jayant Kadambi) than khaddam said: "as we increase the existing products and new automation solutions for investment, our R & D costs rose 65%."
Tremor Video CEO Bill · (Bill Day); Dai said that the company is to increase investment in technology, and said that the investment will promote its better grasp the advertisements from TV advertising to digital video advertising and automation transformation brought about.