Mobile ads appear gruel and "overcapacity"

Abstract: According to foreign media reports, mobile advertising is seen as Chaoyang products, but the surface of prosperity behind, but the mobile advertising companies, a succession of layoffs, more than thousands of people. American technology website analysis says, mobile advertisement appeared gruel and overcapacity, shuffle and

According to foreign media reports, mobile advertising is seen as Chaoyang products, but the surface of prosperity behind, but the mobile ad companies, a succession of layoffs, more than thousands of people. American Science and Technology website analysis says, mobile advertisement appeared gruel and "overcapacity", shuffle and integration is unavoidable.

EMarketer, a market-research firm, had predicted that the mobile ad market would reach $7.29 billion trillion in 2013, but the reality is that the tide of mobile advertising is not "all boats can float". Recently the mobile advertising industry has erupted in layoffs:

-In May, mobile ad networks Velti cut 200 people, and all of its employees were 1125. Last year, the company's revenue was $270 million trillion, which has now lowered its revenue forecast for the year to 2.55 to 280 million dollars, largely in place.

According to TechCrunch, another mobile advertising platform, Tapjoy, has recently cut 20 people, cutting the range by 10%.

In the Washington Post, the entire mobile advertising department was abolished, with news that 54 employees were forced to leave.

--zynga has recently laid off 520 people, not just the mobile advertising department, but the main reason for the massive layoffs is that mobile gaming is a poor income, and mobile advertising is one of its sources.

EA also struggled to adapt to mobile games and recently cut hundreds of people.

Despite IPhone5 's sales rights, operator T has also recently cut 200 to 300 people.

The company's job cuts are different, with Zynga and T being the cause of layoffs, not mobile advertising, and in fact, Zynga's mobile advertising revenue is growing. But in the eyes of outsiders, with the development of mobile advertising, these companies should be the first batch of beneficiaries, there should be no major layoffs.

Among the layoffs, Velti and Tapjoy two companies are the most worrisome, Velti is a rare pure mobile advertising company in the industry and a listed company. Velti last year's share price reached $12 trillion, but now only 1.76 dollars. Sources say Velti could move out of San Francisco's luxurious office.

Tapjoy, like Zynga, has been affected by the sluggish movement of games. Recently, the company invited the Disney Company's former senior Steve-wadsworth as CEO, and in the relevant statements, it did not disclose the cause of the company's trouble.

U.S. News website BusinessInsider analysis that the mobile industry, the root cause of layoffs, may be the highly commercialized market there is "overcapacity", to eat too many mobile advertising companies. While many companies claim to have unique positioning and product offerings, most of the products they offer are identical to the excluding of their shiny rhetoric – just placing ads in mobile apps.

There are now hundreds of mobile advertising companies, each employing more than 10 employees, who are struggling with venture capital and looking forward to a slice of the 7.3 billion-dollar mobile ad. Many mobile advertising companies have no profits, but they are known to be "Investing in the Future".

BusinessInsider pointed out that many mobile advertising companies will be closed, in fact, as early as a year ago, Microsoft has completely shut down the entire mobile advertising business unit. The industry may see a process of shuffling and consolidating the mobile advertising industry.