AllAdvantage.com, the pay-to-surf online advertising company, has been hit by further staff redundancies and is closing some of its European operations. The company is also changing its business model and will now focus on business-to-business rather than on business-to-consumer services.
AllAdvantage pays consumers to view internet ads presented to them via a view bar, which they have to download from the AllAdvantage website.
Users are paid according to how much time they spend surfing the web with the view bar on their desktop, as well as according to how many people they encourage to join the scheme.
Robert Glasgow, the company's managing director for Northern Europe, said that AllAdvantage will shortly be closing its operations in France and Germany, but that it would maintain its presence in those European markets from its UK office. 'It's a more robust online advertising market in the UK,' he said.
The company is also expecting to lay off around five of its UK sales staff.
AllAdvantage will now be licensing out its view bar to businesses as a means of allowing a brand to communicate with its customers. Once installed by a customer, a company will be able to keep that customer updated with permission-based messages providing information on, for example, purchases on offer and news headlines.
'Our original online advertising model just didn't really work,' Glasgow said.
'It is partly due to last year's dotcom shakedown, but also we haven't seen the shift from offline to online revenue that we would have liked, nor have we seen the big offline brands committing money to online advertising like we hoped we would.'