Nigeria’s S&T Media Secures $1m Seed Round
I received an interesting report about Nigerian outdoor media company S&T Media. The advertising channel announced that it has received seed financing from early-stage technology venture capital firm, EchoVC Partners, who have committed up to $1m for the company.
The official announcement comes in the same week that the company secured exclusive retail deals with international outlet Spar and Spanish-based CityDia, to install their latest innovation, AdEdge, an in-store digital advertising screen installed on the aisle shelves to bring commercials to the point of purchase.
S&T’s AdPump, the only digital advertising network in Africa to target consumers at petrol pumps, has raised seed financing that will be invested in expansion, product development, hardware and staff acquisition. The investment was secured after AdPump’s successful pilot to launch and install 160 screens across Lagos in 17 strategically located filling stations.
S&T Media, the company behind AdPump, has since signed exclusive distribution deals with a number of Nigeria’s filling station companies, including Oando Plc, Forte Oil and Total Plc. totalling 1,000 stations across the country. The company has also signed up key advertising partners including Etisalat, Jumia, Smile Communications, House on the Rock, GT Bank and Mall for Africa.
Tolu Roberts, S&T co-founder says: “Since inception we wanted to create platforms that can give brands the location-based reach they crave in a more efficient and targeted manner. Securing institutional funding with the right investor has allowed us to accelerate that vision, as we rapidly develop and install platforms that connect brands with digitally-captivated consumers.
“We are confident that we can penetrate the advertising market with our innovative platforms whilst leveraging on EchoVC’s strategic partnerships”.
Launched in 2014, AdPump’s team installs the digital media screens in filling stations and programs them with advertising-supported content, which is viewed at the pumps. Thanks to content deals with some of Nigeria’s largest broadcasters, including Channels TV, HipTV and Pulse.Ng, to show the latest news, sports and entertainment news, AdPump screens have already recorded over eight million audited views, with each location recording 60,000+ visitors per month and each visitor spending an average of 4-6 minutes at the station, up to 4 times a month.
Eghosa Omoigui from EchoVC Partners says: “We were impressed with S&T Media’s ingenuity in developing new routes to market for advertisers in Africa, namely via location-based digital. The velocity at which they’ve built a for-Africa product, attracted content suppliers, key advertising partnerships as well as a distribution network with such notable brands, is a combination of their excellent product, as well as the market’s willingness to use targeted marketing methods to reach their end user. The customer feedback has been fantastic and reflects the platform’s ability to consistently resonate with advertisers and consumers alike.”
Having secured advertising partnerships with some of Nigeria’s biggest brands, S&T Media are also looking to open the digital advertising space up to the country’s millions of SMEs and are rolling out an online media purchasing tool for those with more conservative ad-spend budgets.
Nigeria’s advertising spend currently stands at about N100b ($500m) a year, and according to PWC, is the fastest growing market in the world, boasting 15.1% CAGR. Capitalising on the continent’s fast-growing consumer class, and working with both homegrown and global brands to connect products & services with end users, AdPump is marrying the latest technology with hyper-targeted messaging.
Whilst telco companies and multinationals are responsible for the majority of advertising spend on the continent, there is a growing awareness of the need for having a voice in the market for smaller companies. S&T’s digital platforms extend the reach of businesses to the last-mile consumer.