European mobile ad powerhouse, Madvertise, completed its Series B financing yesterday, raising a combined $10 million to date. With this new round of investment, they intend to solidify their grasp on the European mobile ad market. This round of funding was led by Germany’s Earlybird, who significantly increased their initial investment, and the Silicon Valley-based newcomer, Blumberg Capital. More after the jump.
Madvertise’s superior technology and innovation in location-based ads has allowed them to build a vastad network across Europe. In fact, over the past couple of years the Berlin-based company has risen to the top of the mobile ad market in Germany, Austria, and Switzerland with over 1.4 monthly page impressions and a 300% increase in turnover in the first half of 2011. Right now, 35 percent of Madvertise’s revenue is generated internationally, however this new round of funding should give them the ability to build their infrastructure across the continent and stimulate international growth.
David J. Blumberg, Managing Partner at Blumberg Capital, added: “The mobile advertising market in Europe has grown enormously and still holds enormous potential. Blumberg Capital invests primarily in innovative and technology-driven companies. Madvertise, with its innovative technology and leading market position in German speaking countries provides the best base to grow and dominate the mobile advertising business across Europe. With our investment we aim to further develop this technological and market share leadership.”
Madvertise specializes in rich media and mobile video ads for smartphones and tablets. The company prides itself upon their ability to deliver site-specific ads to within 50 meters of a target location. This technology is unmatched by Madvertise’s European competitors. The company is so confident in their technology that they recently launched a developer fund worth €5 million. The fund provides extra incentive to publishers and app developers to join Madvertise, as it offers 100% of revenues from ads displayed on mobile apps/ websites until February 2012 (or until the fund is depleted).
CEO and Co-Founder of Madvertise, Carsten Frien, said “Geosensing of their physical outlets can dramatically increase the efficiency of their advertising because we’re cutting out the wastage from cellphone users who are too far away from the dealership or retailer.”
Gartner, the well respected tech research firm, predicted in March that mobile advertising will grow from 0.5% of the total worldwide advertising budget in 2010 to over 4% in 2015. Revenue reached $1.6 billion in 2010, it says, and will increase to $20.6 billion by 2015. Europe’s mobile ad market has a huge potential for growth as the entire European market has not even reached 1 billion thus far. It’s no wonder why Madvertise is trying to secure their foothold throughout the continent.