Israeli company Outbrain Inc., which provides Internet content recommendation that works with websites and directs readers through stories, which are paid-for ads, is laying off 4% of its workforce. The streamlining is part of its refocusing on automated media trade, instead of tools for assisting site editors, "The Wall Street Journal" reports. In itself, laying 4% of its 600 employees is not an especially significant step. In the context of the instability prevailing in the entire digital advertising sector, however, it may indicate more general problems with the company's current models.
Adform laid off 8% of its staff in January, after several similar rounds of layoffs at AppNexus and Rubicon Project, in what was at least a hint of the upheaval taking place in the volatile digital advertising sector.
Outbrain's new focus on advertising through software is well-timed. Publicis Media Group subsidiary Zenith Media expects this segment to be the fastest growing means for media purchases in 2017 with 31% growth.
Outbrain did not make it clear what activity it was abandoning, although earlier this year, it took a big gamble in helping editors to launch chatbots in order to spark greater involvement among readers. It appears that the company is experimenting with new ways of generating reader traffic and revenue.
Outbrain's spokesman told the "The Wall Street Journal, "Our sector is growing rapidly as part of a dynamic and changing industry. We are sharpening our focus and investing resources in key areas of activity that are generating growth."
Founded in 2006, Outbrain calls itself a "platform for discovering content." Last month, the company extended its commercial services on media provided through software to AppNexus's Marketplace, after formerly operating in a closed market.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 25, 2017
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