However, word started to spread that Velti was having difficulties paying its developers, with some claiming that the company was months behind in its payments. In May, the company laid off 200 employees and took a $111 million writedown in this year’s second quarter. Velti has also been forced to sell Mobclix as customers continue to abandon the business.
Velti’s troubles could be a reflection of larger industry trends. Marketers are increasingly focused on omni-channel campaigns that work across devices versus mobile-specific campaigns. While companies like Facebook, Google and Twitter are reporting impressive gains in mobile advertising, their success is largely due to their ability to sell ad products across platforms.
In addition, companies that are taking their marketing efforts in-house or experimenting with automated real-time bidding exchanges further hurts companies like Velti. Velti attempted to automate its services by acquiring Mobclix, but it continued to lose money.