It’s another big day for all of us at ZypMedia — and more importantly, for media companies. We’re excited to announce our $5.6 million Series C funding led by Archer Venture Capital and including existing investors U.S. Venture Partners (USVP) and Sinclair Broadcast Group (Sinclair).First and foremost, welcome to the ZypMedia board, Archer Venture Capital!
Archer Venture Capital shares our vision of building technology that allows media companies to provide local advertisers the same buying power as large national brands. We’re excited to put the proceeds to use by developing new enterprise products for media companies working with local markets. The funds will also be used to double the size of our staff in the U.S. and internationally over the next 12 months.
Demand for local-focused digital products is inevitable. More and more people in the U.S. are cutting the cord. In 2017, eMarketer reported a 3.2% surge in the growth of over-the-top (OTT) viewers compared to 2016. By the end of 2017, there were already 193.3 million OTT video service users in the U.S. This number is projected to rise steadily in the next few years to more than 209.5 million OTT users by 2021.
According to BIA/Kelsey, around 67% of TV advertising in the U.S. came from local advertisers in 2017. With OTT advertising spend predicted to hit $20 billion over the next three years, small- and mid-size local businesses need technology designed to support their unique digital needs. This new round of funding allows us to develop and innovate solutions to meet these challenges even faster than before.
At ZypMedia, we believe that local advertisers deserve the same OTT opportunities as national advertisers.
ZypMedia is capitalizing on the $150 billion local advertising market being disrupted by a shift in viewership from traditional media to digital and OTT, which is expected to hit 182.6 million connected TV (CTV) users by the end of 2018.
The shifting consumer trend towards OTT services and CTV viewership is encouraging local advertisers to start leveraging audiences in this marketplace. The deal will mark a significant push to help make OTT advertising accessible to local advertisers.
“We conceived and built ZypMedia to address a large and underserved segment of the advertising sector — local businesses. Utilizing the ZypMedia platform, media companies can offer local advertisers the same buying power as large national brands, enabling them to participate in the digital media and OTT revolution.”
Aman Sareen, Co-Founder and CEO, ZypMedia
We are incredibly excited to welcome Greg Martin, Managing Director of Archer Capital, to the ZypMedia board and we look forward to working together to create new services that will benefit local advertisers.
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