According to a recent report by Interactive Advertising Bureau, digital ad spending accounted for $17.6 billion during the third quarter of 2016, a robust 20% growth over the year. Google and Facebook accounted for 99% of the growth in the quarter, with Google raking in 54% of the growth, Facebook 45% and the remaining 1% being left for the rest of the world. Clearly smaller ad-tech firms are struggling.

Photo Credit: Thos Ballantyne/Flickr.com

Rocket Fuel’s Financials

Redwood City-based Rocket Fuel (Nasdaq: FUEL) has failed to regain its Unicorn status. Earlier this month, Rocket Fuel reported its second quarter results that failed to revive interest. Revenues for the quarter fell 22% over the year to $90.7 million. It continued to report losses and recorded a loss of $0.39 per share for the quarter compared with $0.24 reported a year ago. On an adjusted basis, loss per share came in at $0.21 for the quarter.

Revenues from North America were down 25% to $69.9 million and revenues from other markets fell 14% to $20.8 million.

By segment, Platform Solutions revenue accounted for 38% of the quarter’s revenues compared with 18% a year ago. Media Services revenue brought in the remaining 62% revenue for the quarter, falling from the 82% share a year ago.

Rocket Fuel’s Expansion

Rocket Fuel’s dismal performance is not for lack of trying. Earlier this quarter, it announced the release of new self-service offerings, including Dynamic Creative and improved Native capabilities that integrate into Dynamic Creative. The Dynamic Creative for self-service solution dynamically selects the layout and products most appropriate for each advertising moment and can create targeted advertisements almost real-time based on prospective consumers’ internet browsing habits.

Earlier this month, Rocket Fuel also announced its partnership with Snap. Rocket Fuel is now a Snapchat Certified Partner that allows their customers to leverage Rocket Fuel’s predicting marketing platform to reach the audience and demographic segments available on Snap. Customers will be able to leverage Rocket Fuel’s existing support for connected TV and video channels as well. Marketers will be able to offer targeted Snap ads that are full-screen, 100% viewable, and have audio on by default.