MCLEAN, VA—Mobile Posse, a provider of mobile advertising and content, has raised $10 million in Series B funding led by SoftBank Capital, with Court Square Ventures, Columbia Capital and individual investors.
The company delivers advertising and coupons directly to phone equipped by a carrier with its application.
Ted Leonsis, the former vice chairman of AOL, owner of sports teams, and angel investor, said on his blog in August that he had made a small investment in the company. Other angel investors include Bernie Kosar, the former Cleveland Browns quarterback; Jack Davies, founder of AOL International, who continues to play an active role in the company’s strategic direction; and Nigel Morris, co-Founder and former COO of Capital One
Earlier this month, Mobile Posse’s strategic advisor Jack Davies told Dow Jones VentureWire, “Everybody’s talking about advertising on cellphones, but this really is a better mousetrap. Davies, the company president and CEO, Jon Jackson, and other top executives were former AOL executives.
“It is great to see so many former AOLers starting companies and joining startups. It is injecting a jolt of adrenaline into the local economy,” Leonsis wrote on his blog, adding that Mobile Posse is a first mover with its “unique” business model.
Highest reach possible
The company describes its product this way on its Web site:
“Mobile Posse has created a break-through mobile advertising solution which enables the highest reach possible with the mobile medium while minimizing delivery costs and personalizing the experience for the consumer.
Mobile Posse’s solution enables delivery of ads, relevant information and content to the top level (or the “idle screen”) of a consumer’s mobile phone in a non-intrusive manner.
The company did a trial run of its product with Cleveland-based Revol Wireless. Jackson told VentureWire the results were “stunning,” resulting in 80 to 90 percent customer satisfaction. Customers were offered free ring tones and other premiums to allow ads on their phones.
A news release said the trial managed a 16.5 percent click through rate, 64 times the Internet advertising average.
Has elements needed to succeed
Steve Murray, partner at Softbank Capital, notes that “Mobile Posse has been able to effectively deliver valuable content and promotions to mobile users in an easy to use fashion.
“The consumer response, as evidenced by click-through rates, has been remarkably positive as compared with other forms of interactive mediums like the Internet. Ultimately, success in this market will be about the consumers’ desire to deeply engage and early returns from Mobile Posse are very encouraging.”
“With its seasoned management team, innovative technology and astute understanding of all its audiences including carriers, advertisers and consumers, we believe Mobile Posse has all of the elements needed to succeed in this space. This new funding will allow the company to manage ongoing trials and market the solution to a larger audience,” says Chris Holden, General Partner at Court Square Ventures
“Mobile Posse’s technology is very appealing for carriers, especially because trials have indicated that offering the idle screen solution not only drives higher ARPU but also increases subscriber loyalty,” said Harry Hopper, Partner at Columbia Capital. “We’re confident that Mobile Posse’s current market traction will continue.”
On the Web: www.mobileposse.com
© 2007, TechJournal South. All rights reserved.
