Online advertising marketplace Adjug is expanding into Europe following investment from German media company Tomorrow Focus AG.
Launched in 2007, Adjug enables website owners to sell space directly to advertisers, who can hone in on the websites that are getting them results. This model is proving successful for a range of clients such as Travelodge and the business has already secured £1m investment from Benchmark Capital and Seb Bishop, who sold his own online advertising business to MIVA for $200m.
After achieving a staggering 300 million impressions for clients last month, the business is now launching the concept in Germany, striking a strategic partnership with Tomorrow Focus AG. Along with Balderton Capial, the venture capital firm behind Bebo, Codemasters and Setanta, Tomorrow Focus has invested $6.5m (£3.3m) in Adjug, in return for a 17% stake of the company, placing CMO Christoph Schuh on the board.
Michael Stephanblome, co-founder and CEO, AdJug, said that Germany was an ideal market for the Adjug model:”This deal represents an important step in the development of AdJug in Europe. We are already experiencing a high level of demand for our transparent marketplace in the UK, and TOMORROW FOCUS AG is the perfect strategic partner to allow us to strengthen our offering and break into the lucrative German market.”
Tomorrow Focus publishes big brands’ websites in German, as well as selling advertising on behalf of many others, and had already been looking to implement a marketplace sales model.
Co-founder Satish Jayakumar added that the partnership would be mutually advantageous. He said: "From their side, they're entering into a model which they can see is now working very well in one country. From our side, we're able to expand into another country, and from day one we will have a list of some of the most respected websites in the country selling their ad spaces using Adjug Germany."
© Crimson Business Ltd. 2008