Is AT&T Admitting Total Defeat on Ad Project?
The news out of AT&T (NYSE:T) camp on its AdWorks project has been bad, and on Friday Business Insider reported the telecom giant was laying off much of its staff in a sign the experiment had failed. However, the loss in the mobile ad space may not mean AT&T is quitting the TV ad sales game as well. The company’s extensive data supply could support that end of the ad business.
According to Business Insider, rumors of layoffs for AdWorks staff had been circulating since late September. Those rumors were confirmed when much of the staff began to disappear from AT&T offices around the country in early October. Reps for the telecom giant told the Wall Street Journal AT&T was ending its focus on mobile ads and increasing its attention on television ads, which the company hopes to influence with the data culled from its extensive network.
Though news of the mobile ad’s industry exponential growth abounds, companies have found it difficult to cut into the overwhelming dominance of Google (NASDAQ:GOOG) and the growing power of Facebook (NASDAQ:FB). One industry insider told the Journal that AT&T made the mistake of veering into territory that Google and, to a lesser extent, Facebook had already mastered. The explanation could be considered in an even simpler way.