The economic impact from coronavirus continues to cut through the advertising industry, with layoffs and hiring freezes at agencies, brands, and adtech companies.
Video adtech firm VideoAmp has laid off 10% of its employees, according to a source familiar with the company. About 210 people work at VideoAmp, according to LinkedIn data.
VideoAmp sells measurement software that advertisers and networks use to measure their digital and TV ads. It pulls an advertiser's ad spend together so that advertisers can track metrics like reach, frequency, and attribution across TV and digital. Marketers use the data to figure out which platforms to invest in and can be used to avoid showing viewers the same ad multiple times. VideoAmp's clients include Omnicom and WPP.
While investors' interest in advertising and media companies has waned in recent years, VideoAmp has secured big backing from investors including The Raine Group, Ankora Capital Partners, Mediaocean, and RTL Group. The 6-year-old firm has raised $106 million, with its last round of funding in May 2019 with $70 million. Last month, VideoAmp acquired attribution company Conversion Logic for an undisclosed amount.
VideoAmp CEO Ross McCray said the company's strategy hasn't changed despite the cut in staff. He said the firm has started offering employees the ability to transfer less than 10% of their compensation from cash to equity in the company. McCray said that he would forgo taking a salary for an unspecified period of time. VideoAmp has not cut employee salaries.
VideoAmp also cut its growth estimate. McCray said he expected VideoAmp's revenue to grow 30% to 50% year-over-year this year, which is down from its growth of more than 150% for the past three years.
Layoffs are sweeping the advertising industry
VideoAmp is far from the only advertising-related company to be impacted by COVID-19. Advertising agency holding companies and digital media companies like Group Nine Media and BuzzFeed have variously laid off staff and frozen pay and hiring while direct-to-consumer brands like Iris Nova and Away have slashed staff and ad spend.