Posted Oct 20, 2022, 9:15 AM
According to the management of Invibes Advertising, the month of September was difficult, ” impacted by the tough economic environment and rising inflation in several European countries. Too bad, it’s also a traditionally strong month for the adtech specialist in “in feed” digital advertising. More generally, a slowdown was observed during the summer in the sector as a whole.
No wonder, then, that turnover only increased by 8.4% in the third quarter, to 5.5 million euros, when growth peaked at 67% in the first quarter and still at more than 40 % over the April-June period. At the end of September, in cumulative data over nine months, revenues therefore only increased by 35.4%, to a total of 18.7 million. The basis of comparison was demanding given the three-digit growth that had been presented for the first nine months of 2021, but the Stock Exchange sanctions this “warning”, the action falling by more than 10% this Thursday on the Stock Exchange of Paris.
The French digital advertising market in slow motion
Invibes develops IT platforms based on proprietary algorithms integrating artificial intelligence, in order to allow the implementation of digital advertising campaigns integrated into content flows (like social networks) on behalf of major brands via media publishers, such as Bertelsmann, Unify, or Groupe Marie Claire. An approach that promotes the interaction and virality of these campaigns.
” Given the growing concerns about consumer purchasing power, some advertisers have decided to reduce their budget or direct it towards limited advertising campaignsdetails Invibes Advertising. In particular, the French digital advertising market was particularly slow in the third quarter of 2022. »
Investments that weigh on the accounts
R&D investments will be continued in order to continue to innovate, expand the range of products and provide a high level of service to its customers, the idea being to emerge from this more difficult period with an offer that will allow at the adtech of ” grow rapidly once market conditions improve “, as had been the case during the Covid pandemic.
Nevertheless, this proactive policy could, in the short term, weigh on the margins, even if the efforts in terms of recruitment are largely achieved, ” Invibes Advertising available[ant] now teams spread over 18 offices in 15 countries, in line with the international expansion objectives presented in the company’s strategic roadmap. Expenses that weighed on the income statement at the end of June, the net loss landing at 1.73 million euros, against a deficit of 0.21 million a year earlier.