Online advertising company AdEffective (ASX:ABN) has ceased development of its domain name monetization platform, and revealed plans to divest three web assets.
In a market update, the company advised it will put a freeze on development and marketing of its Yieldom platform, during a six-month review into whether adequate returns can be expected.
AdEffective launched Yieldom in early 2011, but said market testing over the last six months has shown that its Footar platform and existing syndicated online ad business AdFeed had the best potential for growth. Further development activity will now be concentrated on these businesses.
No further expenditure will be undertaken on Yieldom until the results of the review are in, the company said.
AdEffective also revealed plans to divest its Mp3.com.au, NiceShorts and TheScene music websites, which the company acquired for $100,000 in May 2010, while it was still trading as Swish Group.
The sites had been purchased to augment the company's digital music business. But AdEffective said the board believes that given the high levels of competition and decreasing margins within the digital music sector, the assets are “of low commercial value.”
AdEffective has already tightened its focus from the wider digital media business of Swish Group, which spent time in administration last year before a recapitalisation and restructure plan was enacted.
In November, non-executive chairman Andrew Plympton revealed that plan - involving buying the online advertising assets of Planet W and adopting those as its focus - had helped the company grow its sales 12.8% year-on-year in 1Q11.
ABN shares stayed flat on Thursday at $0.001.
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