One of my favourite topics is the increasing complexity of media planning and how it is moving towards a search model where it literally is no longer planned in campaigns. Basically the sophistication of what ad is served where gets so complicated it can only be managed by a computer.
Automated Media-Buying Platforms Gaining Traction by Mark Walsh, Yesterday, 3:12 PM
As agencies increasingly turn to automated systems to buy media and manage online ad campaigns, more money is flowing to startups that provide that technology. In that vein, digital media-buying platforms MediaMath and Traffiq both announced new venture capital funding Monday.
New York-based MediaMath secured $12.5 million in venture capital and debt financing, with the $10 million venture investment led by Safeguard Scientifics, Inc. and including QED Investors and European Founders Fund. The $2.5 million in debt financing came from Silicon Valley Bank.
Started in 2007, MediaMath says it serves billions of ads per month through its platform on behalf of 20 agencies, including the major holding companies.
Online ad marketplace Traffiq, meanwhile, has raised $10 million in a second-round venture financing led by Grotech Ventures and Greenhill SAVP and including prior investor Court Square Ventures. In connection with the investment, Grotech general partner Steve Fredrick and Greenhill managing director Brian Hirsch have joined the New York-based company’s board of directors.
Last month, New York-based Traffiq announced partnering with Havas Digital to automate online media planning and buying in the agency’s New York, Boston and Chicago offices. Both companies’ systems are designed to help streamline the notoriously outdated process for online media planning and buying that includes faxes and paper notes. The startups are also competing with established players such as Donovan Data Systems and MediaBank in pushing to develop state-of-the-art media-buying systems.