Question-and-Answer Session
Operator
(Operator Instructions) And our first question will come from the line of Youssef Squali with Jefferies & Company. Please proceed.
Youssef Squali - Jefferies & Company
Yes, thank you very much. Youssef Squali. Hi, John, hi Magid. A couple of questions. First, to you Magid. If I look at your net ads, they've been on a net basis, they've been coming down. I wonder if you can help us try to figure out how much of that is really economy-driven and how much of it may be potentially the beginning of market saturation for the product? I know this is not something that's been out for a long time, but in markets like this, one just wonders.
And then John, your ARPU by our math was down about 4% year-on-year. How do you reconcile that, and the fact that, I think you said, most of the churn came from smaller customers? So, if your smaller customers arguably have lower ARPU, and if you lose arguably all of that, all of them, your ARPU should maintain itself or even go up. So you're losing smaller customers yet at the same time seeing ARPU decline. Can you try to reconcile that for us?
John Green
Sure. As far as the market saturation, as we mentioned, we have gained 112 new customers, on a gross ad basis. And that's pretty consistent with what we have seen historically. So, as far as demand from new customers for the product, the market potential is still there.
I can tell you without equivocation, that the losses that we are seeing among some of the small customers are definitely driven by the economy. All the evidence that I get from talking to our commercial people basically say that people have some companies that are really in trouble, and they just had to prioritize their spending, particularly when they are having funding difficulties.
And to a large degree, that's also something that we have seen in the mobile space as well. In the mobile space, you had a lot of companies that have raised money with the expectation that mobile advertising will take off. Some of that expectation was, I guess, either too early or the economy has snuffed it out. So as a result, we do see that also some of the smaller, newer mobile companies are suffering some of the same trends. But overall, I really don't see a market saturation at all. I think we still have the international market pretty much wide open, and that alone represents a huge opportunity for us.
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