In what may be a move to eliminate the perception of conflict of interest, Lotame has decided to eliminate its ad network - known as Lotame Media Group (LMG) - and concentrate solely on its data management platform business called Crowd Control. In a note to the press and clients today, CEO Andy Monfried wrote, "Shuttering LMG was difficult because it worked well for our clients and taught us a great deal about how to effectively manage data. But I'm entirely confident I've made the right call as the decision enables us to renew our commitment to being the DMP by which all others are judged."
It may be painful for Lotame to move away from their media business in the near term which probably drove top line revenue - if not bottom line, too. Monfried and company likely see a long term benefit to this "pivot" which aligns with clients' DMP needs as well as a future exit for the company. Competitors may have been active in pointing out the network conflict to potential Lotame clients, too.
Lotame claims to target marketers and publishers with its DMP. Read the company's new FAQ on the changes.
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