With Google and Facebook giving massive control over the online advertising market and leaving only waste for other advertising platforms, it was perhaps only natural that tech startups would step back and look for ways to sell billboards.
AdQuick, According to TechCrunch, an outdoor advertising marketplace (OOH), TechCrunch has completed a $ 6 million Series A run by Initialized Capital with the participation of WndrCo, Shrug Capital, The Todd & Rahul Angel Fund and Rapper Nas. The start-up has now raised $ 9.4 million.
AdQuick is not active in the rental of advertising space. As with conventional channels, they connect the owner of an advertising space with a buyer and take a commission for the purchase. Unlike some other channels, they tried to incorporate the web’s ad analytics into the process so buyers understand what they’re paying for impressions and can point brands to locations with higher ROI that they may not have been looking at.
"They know that the digital market is so outbid and essentially controlled by Facebook and Google that the return on outdoor advertising is getting higher because people need to see and experience it in public," said Alexis Ohanian from Initialized. TechCrunch tells who led the deal.
Over the past few months, startups like ZeroDown and Brex have drawn San Francisco's attention to in outdoor advertising campaigns, while the explosion of direct customer brands with massive online advertising spending has prompted startups to look at the prices of a billboard on the 101, not just for SF properties or New York or LA, which saw increased demand; CEO Matt O’Connor tells TechCrunch that the OOH ad market is growing rapidly across the board.
"It's the only non-online channel that's growing, and it's actually growing faster than last decade," said O'Connor. "A big tailwind is that brands want to spend offline sooner than ever because it has become so expensive that they are forced to look for channels with better payback."
The main opportunity AdQuick is taking is the estimated 30-35% of OOH ad space that went unused in the United States last year.
Using the digital advertising space sold by Google and Facebook means improving competitive conditions and helping part of determining the ROI of real ads to rely on the same creepy ad analytics services that link web behavior and location data to unidentified devices for serving Online ads – but those are the evils of the advertising world in 2020. These processes allow ad buyers to get a better idea of what their bench advertising investment in Cheyenne, Wyo, will actually mean in terms of impressions and how much they will mean pay per pair of eyeballs.
One thing AdQuick isn't interested in is looking for an entry point into the non-OOH compliant digital ad market. "This is pretty bloody water that has been picked by both the duopoly and thousands of other adtech companies with unannounced quotes," said O'Connor.