San Francisco, CA (PRWEB) October 13, 2010
Today xAD announced an expansion capital round of funding from Emergence Capital Partners, a leading venture firm known for its investments in market-leading brands such as Salesforce.com, aQuantive and Doubleclick. The already profitable local mobile ad network will use this additional capital to expand its technology platform, scale its management team, and increase its footprint in the local mobile advertising sector.
U.S. local mobile advertising is estimated to be a $213M market, and is expected to exceed $2.025B by 2014, according to the Kelsey Group. Nearly half of all revenue projected for mobile advertising is expected to come from the local sector. Yet unlike the in-app and mobile-display businesses, local mobile advertising has yet to take off – leaving the market virtually untapped.
“Our data indicates that mobile ad inventory has greater value and performance when tied to location,” says Mike Boland, analyst with BIA/Kelsey Group. “xAD is ahead of the curve in building a uniquely local advertising network, where user intent and location relevance considerably boost ad performance.”
The xAD team has developed a variety of mobile search algorithms, and has successfully applied this knowledge to unlock the potential of the local mobile market. The company’s patent-pending mobile optimization technology identifies who, what, and where an end user is, and serves the most relevant advertising based on that information. Publishers and advertisers benefit from xAD’s platform, which is already the largest combined network with more than one million local and national performance-based advertisers.
As part of the funding round, Jason Green, partner of Emergence Capital, will join the company’s board of directors. “We have been waiting for the opportunity to invest behind a leader in local mobile advertising, the fastest growing segment of digital media today, and we found it with xAD,” Green said.
xAD, already profitable and growing at a rate of 20 percent each month, will use the investment to expand its technology platform.
“xAD has built a successful business by generating higher revenues for local mobile applications than what the industry is used to. Emergence Capital provides unique experience to our business with repeat successes in advertising technology, making them the ideal partner for us,” states Dipanshu “D” Sharma, founder and CEO of xAD.
About xAD, Inc.
xAD connects local businesses to mobile consumers. xAD is the largest local mobile search and advertising network in the United States. The company’s patented mobile optimization technology identifies who, what, and where an end user is, and serves the most relevant click, call and check in based advertising. The xAD team has years of experience in developing mobile search algorithms, and has successfully applied this knowledge to unlock the potential of the local mobile market. xAD publishers and advertisers benefit from the scale and reach of the LocalAdXchangeTM platform that manages billions of search and ad requests with the largest combined network of more than one million local and national performance-based advertisers. For more information on xAD, visit http://www.xAD.com.
About Emergence Capital
Emergence Capital Partners, based in San Mateo, Calif., is the leading venture capital firm focused on early and growth-stage Technology-Enabled Services (“TES”) companies including SaaS, Digital Media, Cloud Computing and Information Services. Its mission is to help build innovative market leaders in partnership with great entrepreneurs.
Emergence partners have funded and helped build more than 35 TES companies, more than any other early-stage venture firm. Emergence Capital has assets of over $325 million under management. Emergence Partners were early investors in Salesforce.com, as well as other market-leading companies such as SuccessFactors, HireRight (IPO, merged with USIS), aQuantive (IPO, acquired by Microsoft), DoubleClick (IPO, acquired by Google), Ask Jeeves (IPO, acquired by IAC) and WebTV (acquired by Microsoft). Through its close association with Salesforce.com and other SaaS leaders, Emergence Capital Partners is working to accelerate the movement of all software to the on-demand model and is championing a new approach to venture capital investing. For more information on Emergence Capital, visit http://www.emcap.com.
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