Nothing is constant except change, which is especially true for delPlaya Media, Inc. this week, which said it will streamline its operations to focus entirely on the firm’s burgeoning mobile video advertising business.
“As of March 31, 2016, delPlaya will no longer offer streaming services to Internet radio and television broadcasters,” the company tells us. “The company’s move aligns with market trends. According to eMarketer, a leading market research firm, mobile advertising grew by 59 percent in 2015 and is expected to grow by 38 percent in 2016. Specifically, mobile video advertising, the segment of the market targeted by delPlaya, is expected to reach $2.78 billion in 2016.”
It’s a strategy shift that could pay big dividends for delPlaya, say industry observers.
“About two years ago, we began generating revenue for iPhone and Android app publishers,” said John Williams, delPlaya’s CEO. “We now excel at maximizing our app publishers’ aggregate monthly revenue, so we’re adjusting strategy to focus solely on the company’s greatest growth area, delPlaya’s mobile video business.”
Jeff Pescatello, a delPlaya co-founder, agrees.
“Focusing exclusively on growing our mobile video business offers tremendous upside, but sadly, this also means we can no longer spend time with our valued streaming services customers,” Pescatello said. “We are thankful to have had such amazing broadcasters using our streaming solutions for the past several years, and we wish them continued success with their stations.”
The company, headquartered in Santa Barbara, California, helps premium iOS and Android application publishers generate revenue by playing video ads from major brands in their apps.