Online advertising in general is terrible, and our expectation that “information should be free” has tragically even fueled disinformation-filled social networks like Facebook. Many companies have tried and failed to turn advertising into a way to promote good causes. What should I do?
When I met Amy Williams in 2016, it seemed like her idea of a “promotion of good” platform was doomed like everyone else. But it just goes to show that it’s usually impossible to predict the success of early-stage founders. For the company she founded Good loop, has now closed a $6.1million (£4.5million) Series A round for its platform, which entices people to watch ads to ‘unlock’ a charity donation. And there’s more to it than meets the eye.
The funding round was led by a New York-based investment fund, Quaestus Capital Managementwith additional support from Scottish Enterprise, impact investor SIS Ventures, a European ad tech fund capital of the first party and investing on the Seedrs crowdfunding platform. That means Good-Loop has raised a total of $8.2 million so far. The funding will be used to accelerate the company’s product roadmap and open offices in New York and Chicago to serve the US market.
As well as one B corporation Good-Loop says its “View Ads to Donate” model offers more meaningful brand engagement, free user philanthropy, and “4.5x higher ad recall than the industry standard,” according to the company. It also says demand for its programmatic solutions has increased by 180% over the past 12 months.
Charities on the Good Loop platform receive 50% of advertising revenue. Customers include Unilever, PepsiCo, Nestlé, Levi’s, adidas, NBC Universal and Nike. With this model, Good-Loop claims to have raised more than $5 million for charities around the world including Save The Children, WaterAid, Feeding America and the WWF.
Amy Williams, CEO of Good-Loop, who co-founded the company with CTO Daniel Winterstein, said: “At the heart of our industry is an inherent value exchange between advertisers and consumers, and my mission is to leverage that value as a meaningful force for always. Through our respectful, positive advertising platform, brands can treat people online as partners – not targets – united by a desire to make a meaningful social impact. The support of industry experts like QCM and FirstPartyCapital, social impact investors and the general public will help fuel our growth while staying true to our values every step of the way.”
Austin Davis, CEO of QCM, said, “Good-Loop takes advertising and conscious business to a whole new level, becoming the industry’s fair trade label. The business model solves many long-standing problems in the industry and is the necessary paradigm shift to regain consumer confidence in transparent and ethical advertising… It’s a win-win for all parties.”
Good-Loop has also introduced solutions for advertisers to measure and offset the carbon costs of their digital advertising campaigns.
In an interview, I asked Williams what she thought helped bring the company to a Serie A: “I think it’s a combination of good timing and good traction. In terms of timing, brand purpose has grown over the past 10 years. Unilever led the way when they began building socially-focused brands like Dove soap when a major study showed their purpose brands had grown faster than the rest of their portfolio. That was a bit of a starting point for other companies to start thinking about it. Consumers are now buying brands that reflect their values. Now, consumers increasingly want to express their social values, e.g. B. where they stand on issues such as the climate crisis and diversity and inclusion. We picked up on this trend.”
So what has changed?
“In the past 18 months since the pandemic, there’s been a massive catalyst for this, both in terms of brands stepping up and communities reassuring and supporting,” she told me.
“You have Deliveroo giving food to NHS workers and you have Nike Running training classes in your lounge. Every business has stepped up and consumers have felt it. I think we all had this very deep sense of how quickly the rug can be pulled out from under you. All of this means that we are in the right place at the right time. We create technologies that make it easy for brands to do good and brands to connect with consumers about these issues. A third of our turnover now comes from the USA, especially with regard to CSR and corporate responsibility. So yes, in the right place at the right time,” she said.
I asked her if the shift towards social good could be a flash in the pan as the pandemic seemed to be passing?
“The genie can’t be put back in the bottle,” she said.
“Large companies have started to commit to net zero. Many of them want to be carbon neutral by 2025. ESG investments have tripled over the past 12 months. So if you want to get shareholders’ attention, you have to take these things seriously. And on the consumer side, we’re seeing consumers both being more loyal and spending more money on brands that stick to their values, like branding. B. the environment, orient. For example, they are eight times more likely to buy from a brand that takes climate change seriously.”
Williams said that consumers expect brands to change their behavior and to report on that change: “So if you don’t, quite frankly, you’re left behind. We have developed a range of products that measure the carbon cost of every ad that brands run in their digital advertising. So we built a complete infrastructure that tracks the data transmission and power consumption of their advertising campaigns and then carbon offsets them in real time. So that’s an example of where yes, we started with a charity product with a broad data product suite and we now have products that enable businesses to address many of the social causes that are expected of them.”
As brands clamour to back causes, Good-Loop raises $6M for its view-to-donate ad platform – TechCrunch Source link As brands clamour to back causes, Good-Loop raises $6M for its view-to-donate ad platform – TechCrunch