June 13, 2024 at 04:05PM
Oracle Advertising is shutting down after a decline in revenue. The company’s stock has risen due to deals with Google Cloud, Microsoft Azure, and OpenAI. This move follows a series of acquisitions and challenges related to data privacy laws and legal issues. Industry experts suggest a shifting landscape for advertising data businesses.
The key takeaways from the meeting notes are:
– Oracle has decided to shut down its advertising business, which saw a significant decline in revenue over the years, dropping from $2 billion in 2022 to $300 million in fiscal year 2024.
– This move follows a decade of ad-oriented acquisitions by Oracle, dating back to 2012. The decision is also an outcome of the increasing privacy-related legal and business challenges faced by the company, particularly in the wake of the Cambridge Analytica scandal, as well as changing data privacy regulations such as Europe’s General Data Protection Regulation (GDPR).
– The shutdown of the advertising business is expected to lead to layoffs, with the director of data science engineering at Oracle Advertising indicating that there is a team of data science experts seeking new employment opportunities.
– Industry analysts and experts point to the changing dynamics of the advertising data business, noting that second- and third-party data is no longer a high-growth business and that privacy regulations and technological developments are substantially limiting the commercial potential of non-consented personal data.
– Despite the financial impact on Oracle, some experts see this move as a step towards a more privacy-aware and responsible approach to data sharing and advertising, which could benefit individuals with sensitive backgrounds and interests, even though it may result in job losses and company shutdowns.
Overall, Oracle’s decision to shut down its advertising business reflects the evolving landscape of data privacy, advertising, and the increasing importance of responsible data handling.