SocialMedia, a popular advertising platform for social network applications, has hired boutique investment bank Savvian to help it raise a Series B round that will likely amount to around $20 million.
Savvian is the same firm that was hired by Federated Media, another ad-serving company, to help it shop around for potential investors earlier this year (the company eventually raised $50 million).
SocialMedia has been posting some impressive numbers over the last year, with about 7x growth in revenue and a reach of more than 20 million people. The company says that it serves more than 2 billion ad impressions monthly at around 50 cent eCPMs. Last month, the company announced that it had distributed a total of over $8 million to its 1000 participating developers, although a few particularity successful developers likely received the majority of the take.
SocialMedia intends to use the money to shift its focus from direct advertising (like banner ads) to brand-based advertising (like the company-sponsored actions you see in some Facebook applications).
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Headline spelling for Savvian is wrong.
Thanks Bob, got it.
that´s about $1.000.000 in ads sales. Provided they get 50% cut, that´s a 500k business. Considering further restrictions on soc.net apps virility….what would be the estimated upside for this business?
Thanks for this information.
If i was an investor I would steer clear of investments into companies dependent on Facebook’s platform until the effects of it’s platform / profile changes are known.
There’s a chance that a lot of apps who don’t integrate well with the new changes will take huge hits on traffic. That’s a huge risk.
Wow that is a lot of $$ involved , thanks for this
Thanks again
Evan though it’s offtopic, i just want to ask something. What bug makes feedburner show 914k readers for this site ???
Giving banner ads as an example of direct advertising is misleading. The banner is just the creative format and most internet brand advertising is done through banners as well.
Direct means the advertiser is looking for the visitor to perform some immediate action like making a purchase or filling out a lead form. Brand advertising means the advertiser is less concerned with immediate action but wants the viewer to remember the ad later.
Brand advertising generally pays better for ad networks because the media buyer is less concerned with measurable ROI on that specific placement.
No way they are getting 50 cent eCPMs on an average basis across all geographies. Must be US only.
Also, while they traditionally had a 50% rev share with publishers/developers suggesting $16MM in revenues to date, I hear this is coming down with increased competition across the space.