As it works on raising as much as $1 million in new capital, Adfinitum has just increased its revenue by signing up a huge new client.
On Wednesday, St. John’s-based Adfinitum signed up the third largest advertising holding company in the world as a client. Adfinitum CEO Ed Clarke declined to name the new customer, but he did say that Adfinitum’s system would allow any of its thousands of staff members on five continents to use data on existing ads as a research tool for planning ad campaigns.
Usually when Adfinitum grows, it does so by expanding its massive databank of advertisements, which it mines to provide intelligence to the advertising industry. The angel-backed company already boasts a collection of 11 million advertisements from about 55 countries, which tell its clients about what sort of ad campaigns are being launched in their industry all over the world.
The timing of the new client coming on board is perfect because Clarke is in the process of raising $750,000 to $1 million, his first fund raising in years. He said about half the round is already committed, though he declined to give further details.
The Newfoundland and Labrador Angel Network placed an undisclosed amount in the company in November 2007, and two years later a group of Japanese clients invested (It’s the only Atlantic Canadian startup I know of with Japanese angels). Otherwise, Adfinitum has been growing on revenue and non-dilutive financing, including contributions from the commercialization program of the Newfoundland and Labrador Department of Innovation, Trade and Rural Development.
The revenue has been growing largely because for two years its databank of ads has been expanding exponentially. It had 3 million ads in September 2009, 5 million two months later, 7 million in March 2010, 9 million in November 2010 and now is up to 11 million.
Clarke says the databank is still growing but admits that there are limits to how much more growth he can muster with 55 countries already covered. ``There’s only so many more people we can attract,’’ he said. ``If we get to 80 or 90, then you’ll know we’ve grown up.’’
With the databank maturing, what Clarke wants to focus on now is extending the reach of the searches his clients can perform using Adfinitum. He plans to use the capital he’s raising to finance an upgrade of his systems so clients can investigate not only the ad placements in competitors’ campaigns but how much they’re spending on their ad campaigns. The missing piece in his offering, he says, is letting clients know how much other people are spending to advertise in various countries.