Mobile Ad Network Grows as Online Ad Market Slows
Though the online ad market is still growing, with the IAB reporting the first half of '08 growing 15.2% over the same period last year, it's not growing in the "widely awesome" way that it did before, Adotas reports.
It's a good time to be a focused premium vertical ad network with a relatively variable cost structure and a reliable infrastructure that scales up or down, depending on how sales go every month. The overall climate will not likely cool off the launching of new networks, despite a more difficult fund-raising environment.
Yes, funding is limited, and layoffs are pending. Last week the Sequoia-backed AdBrite – in a move to make the ad network cash flow positive and profitable – laid off 40 employees (40% of its total staff) TechCrunch reported.
But wait, what's this here? Mobile ad network AdMob just nabbed $15.7 million in third round funding from – you guessed it – Sequoia's Capital Growth Fund (plus Accel Partners). The two-year old network served 4.5 billion ads across 6,000 mobile sites in November, writes MarketingVOX.
Apparently, it's all about your name. Next time you're thinking, hmm, what can I add on to the word "Ad" that will create a wildly successfull company? Pick abbreviation over trendy mispellings. You won't regret it.
