LocaÂtion-based mobile adverÂtisÂing agency Verve Mobile, which speÂcialÂizes in geo-tarÂgetÂed and geo-fenced camÂpaigns, has boostÂed its cofÂfers yet again with a third round of venÂture fundÂing led by Nokia Growth PartÂners and Qualcomm.
OthÂer investors includÂed BlueRun VenÂtures, a regÂuÂlar funÂder of up-and-comÂing mobile adverÂtisÂing agenÂcies, and this latÂest $14 milÂlion cash injecÂtion brings Verve’s total investÂment to at least $21 milÂlion (the comÂpaÂny secured $7 milÂlion from BlueRun in the preÂviÂous round, so $21 milÂlion is probÂaÂbly a conÂserÂvÂaÂtive estiÂmate). In the world of mobile phones adverÂtisÂing, this agency is clearÂly doing someÂthing right.
A mobile star rises
Just take a look at the stats: the agency’s netÂwork attracts 108 milÂlion uniques every month and can now claim bragÂging rights over 6 bilÂlion monthÂly impresÂsions. ComÂpare that with one of the realÂly big guys, pubÂlicly tradÂed mobile adverÂtisÂing firm MilÂlenÂniÂal Media: it made over $47.4 milÂlion in revÂenue last year when it hit 380 milÂlion uniques in Q3. That’s not a bad comÂparÂiÂson for a risÂing firm that startÂed life in 2005 – the era that saw the birth of a wave of mobile ad firms like AdMob (now owned by Google) and QuatÂtro (now owned by Apple). Verve is still owned by itself.
Verve claims that its locaÂtion based techÂnolÂoÂgy is the secret to its sucÂcess. It lets adverÂtisÂers geo-fence their camÂpaigns or tarÂget their ads to tightÂly limÂitÂed geoÂgraphÂiÂcal areas. A banÂner ad camÂpaign by Verve for a Texas groÂcery chain raised the clickÂthrough rate by 4 per cent by putting the customer’s disÂtance from the nearÂest store into the commercial’s creative.
SimÂiÂlarÂly, a camÂpaign for H&M focusÂing on its David BeckÂham-brandÂed wear geo-fenced the ads to three cities: New York, Los AngeÂles and San FranÂcisÂco. Like the Texas examÂple, cusÂtomers were invitÂed to go visÂit the nearÂest store.
The geo-tarÂgetÂing sucÂcess story
The locaÂtion-tarÂgetÂing feaÂture develÂoped by Verve can more than douÂble a mobile ad campaign’s effecÂtiveÂness, the comÂpaÂny claims. The indusÂtry averÂage for mobile ads is a clickÂthrough rate of 0.4 per cent; Verve’s geo-tarÂgetÂed camÂpaigns hike this to around 1 per cent.
A sign of the firm’s sucÂcess can be seen in the numÂber of offices it now has: they can be found in Atlanta, ChicaÂgo, DalÂlas, Detroit, Los AngeÂles, New York City, San Diego, San FranÂcisÂco and WashÂingÂton D.C.