MediaMath lays off 8 percent of staff, citing COVID-19's impact
Independent demand-side platform MediaMath has laid off 8 percent of its workforce in the wake of COVID-19.
MediaMath is a demand-side platform, or DSP, that’s used by agencies to buy ads through automation in areas such as connected TV or display. In 2018, the ad tech company raised $225 million from Searchlight Capital Partners, and at the time was reportedly valued at more than $1 billion. MediaMath has between 500 and a thousand employees, according to its LinkedIn profile. Clients include Havas, Caderon and Dentsu and is among the better known DSPs within the industry.
“This is a time of profound change,” Konrad Gerszke, president of MediaMath, told Ad Age in email. “Ad budgets are under review as spending patterns and media consumption are shifting, supply chains are disrupted, and companies are re-thinking how to reach their consumers and customers.”
The novel coronavirus is making a dent in the entire programmatic supply chain, starting with DSPs such as MediaMath. The most recent data suggests that 48 percent of media buyers and brands have either canceled their ad spend for the second quarter or made some sort of adjustment.
The coronavirus has created a ripple effect in the programmatic supply chain, where demand-side platforms such as MediaMath were expected to take the first hit. That’s because brands in some instances don’t pay agencies (which in turn don’t pay DSPs) for campaigns due to unexpected events such as COVID-19. When that happens, demand-side platforms such as MediaMath can either swallow the entire loss or spread it out across the entire supply chain.
Gerszke says the decision to layoff staff was “an incredibly difficult one,” adding that employees also received a 10 percent salary reduction. The company has also paused its 401K contribution program.
The company will continue to focus its efforts in connected TV, according to Gerszke. “While we pursue that path, we are making sure our businesses are well prepared to navigate the current uncertainty successfully.”