Advertising technology firm, Rubicon Project, has admitted that it fell short of the header bidding trend.
Rubicon Project FastLane hasn’t taken off fast enough
Stocks plummeted over 30% in trading on Wednesday following downgrades from analysts.
Header bidding is essentially an advanced programmatic method that allows publishers to offer inventory to various advertising exchanges to increase yield and make more money.
Rubicon Project operates one such mobile exchange, which connects brands to users across mobile apps and the web.
The firm rolled out its header bidding solution, FastLane, in October 2015, when rivals had long established their alternatives.
70% of publishers have now adopted the technology and many advertising technology firms do give credit to header bids for boosting their revenues.
Rubicon Project came late to the party. But that’s not all. The company has also faced some challenges within its marketing business following the acquisition of Chango in April 2015.
Despite exceeding analyse expectations through revenue results, analysts downgraded its stock based on header bidding concerns.
RBC Capital Markets wrote:
“We were on the wrong side of this one. RUBI is beginning a meaningful business transition since it has encountered the ‘perfect storm’ of a quicker than expected slow-down in Desktop display advertising coupled with a faster than expected pick-up in header bidding.”
Indeed, for analysts header bidding has proven successful and Rubicon Project has yet to catch up.