Inside Juul's layoffs, IgnitionOne's shutdown, and theSkimm sale talk
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Before you head out for the Thanksgiving holidays, make sure to read Tanya Dua's insider reporting on Juul's implosion, where 650 people, or 16%, were laid off amid mounting regulations and federal investigations. Some key takeaways from former employees:
- Some thought the cuts reflected problems of unchecked explosive growth, lack of proper business processes, and mismanagement.
- Some said they lost faith in the company's leadership as they saw the executive ranks packed with people from tobacco and alcohol companies.
Funding for adtech companies may be drying up, leading to consolidation, but it's still notable when an established and heavily funded one goes under. Lauren Johnson's been following the story of one of adtech's first firms, IgnitionOne, that raised $85.2 million and just shut down, with backers losing their stakes. Key points:
- IgnitionOne was billed as a "one-stop shop" to help marketers with their digital-ad spending. It pitched advertisers on its expertise of Google, Facebook, and programmatic advertising early on.
- But agencies have been cutting the number of adtech companies they use, putting pressure on adtech companies to differentiate what are similar-looking offerings.
Finally, I was curious about what's happening with theSkimm, which has raised more than $28 million on its ability to connect with millennial women with its breezy, speed-read daily news digest.
TheSkimm is mostly ad-driven, but given how hard it is for independent media companies to compete for ad dollars, the path forward for companies like it is to pivot hard to subscriptions and other revenue streams or get sold. That seems to be where theSkimm finds itself now.by subscribing to BI Prime; use promo code AD2PRIME2018 for a free month.) And send me tips at email@example.com.