Dubuque, Iowa–(BUSINESS WIRE)–Digital ad company Obitobits Inc. (NASDAQ:OBIT) is facing its biggest advertising loss ever with an estimated $200 million loss for its digital advertising campaign in the fourth quarter of 2015, according to a new study.
The study by the American Advertising Federation (AAF) also found that Obit’s revenue from online advertisements dropped from $5.6 million in the first quarter of this year to $3.6 billion in the latest quarter, a significant decrease.
The company said in a statement that it is focusing on new and emerging technologies and is evaluating strategic alternatives.
The loss for the fourth-quarter period comes as the company continues to face new challenges in a rapidly changing digital advertising market.
While digital advertising revenue grew 8% year over year, advertising revenue is now down 11% from the same period a year ago.
That means Obit lost $2.5 million in advertising revenue in the last quarter, according the AAF.
Obit said it will continue to focus on emerging and emerging platforms in the advertising space and will “develop new ad formats and digital content that will better serve our customers, brands and advertisers.”
It added that the loss for 2016 was the result of “unanticipated, significant operational challenges.”
The ad company said it is “evaluating our strategic alternatives, including the development of an online ad platform for our advertisers, and is making progress on several initiatives that will result in further growth.”
Obit, based in Dubuques, Iowa, was founded in 2013 by Aaron Pappas, the CEO of advertising agency WPP and former President and CEO of the World Wide Web Corporation (WWW), a global technology company.
Its clients include Walmart, Apple and the NBA.
It has approximately 6,000 employees and revenue of $2 billion.
It said that, as of September 30, 2016, it had an advertising business of $9 million and has over 50 employees.
Obitiz has been on the market since 2013, when it acquired the advertising service for online publishers, AdWords.