In Short:
Ericsson is closing down its advertising technology subsidiary Emodo, citing a shift away from mobile operators and failure to meet financial goals. The adtech unit, launched in 2017, aimed to offer data-driven solutions to advertisers and publishers. The move reflects telcos’ declining interest in adtech. Ericsson did not clarify the fate of the 75 affected employees. This follows the closure of its Edge Gravity edge computing business in 2020.
Ericsson to shut down adtech subsidiary Emodo
Ericsson is closing down its advertising technology (adtech) subsidiary Emodo, which was established to provide monetization opportunities through digital advertising to the telecom customers of the Swedish telecom equipment manufacturer, as reported by US-based Light Reading.
Emodo currently has 75 employees, but Ericsson has not disclosed the fate of these employees following the shutdown, according to the report.
Background and Purpose
Launched in 2017, Emodo aimed to utilize Ericsson‘s mobile data expertise for advertising and marketing purposes. The adtech unit focused on delivering data-driven solutions for advertisers and publishers, emphasizing audience targeting and measurement.
Industry Trends
The move aligns with the growing interest of telecom companies in the adtech sector. While some operators like AT&T and Verizon have made significant investments in adtech, the report noted that most telcos have now shifted their focus away from this space.
Key players in the Indian telecom market, including Reliance Jio, Bharti Airtel, and Vodafone Idea, have also entered the adtech domain with their respective offerings – JioAds, Airtel Ads, and Vi Ads.
Recent Developments
In addition to closing down Emodo, Ericsson also shut down its Edge Gravity edge computing business in 2020, as reported by Light Reading.
