Ad Startup Spongecell Entices: Eric Schmidt and Others Invest

Spongecell is helping pioneer a new frontier for ads, creating “rich-media-like”, graphic and interactive displays that customers can’t help but be drawn to.  These rich media ads are unique in that they can be placed in display advertisement formats.

The advertising start-up is already in negotiations with some major ad agencies, and just this morning, Eric Schmidt and Jim Pallota of Raptor Group are looking to further introduce more rounds of financing with many others.  This includes board members of the Pittsburgh Steelers and Silverhaze Partners.  Reports suggested early estimates of just under $1 million to close this most recent round of investing.
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The investment is a smart one, especially considering the types of numbers Spongecell puts out there.  The ad company claims to have eight times the interactivity from customers than standard ads.  The engagement rates springboard from 2.4% to 11.9%–results that many ad platforms could only dream of.

Well, for Spongecell that dream became reality when they sought to change the nature of ad space.  With customers being able to watch videos, interact with maps, download coupons and utilize social medias, the ad platform served to stimulate more than just one sense.  This stimulation gave way to curiosity, inevitably giving Spongecell’s its non-debatable success.

The genius behind it deserves its due credit.  Spongecells’ ability to utilize the display advertisement format gives them the ability to create and implement quickly for their clients.  That is a home run! Out of the park! Too be that efficient, that proficient in both the business they sell and the business they create is a clear formula for success.  One can imagine their attractiveness really emanating now.  If you can get on board with Spongecell, it is their assessment that you can foresee greater ad profits.

Eric Schmidt, in a sit-down with Spongecell CEO Ben Kartzman, proclaimed that they represented the future of display ads–what all display ads hope one day to be.  With that endorsement, coming from a former CEO and now chairman of Google, Spongecell just went supernova.  Google being the presence it is, especially in the ad space industry, the aforementioned compliment can help carry Spongecell and the rest of us to the future of display ads.       



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