Is Consolidation In Mobile Ads Overrated? Madvertise Raises $10 Million

We have seen some evidence of consolidation in mobile advertising, but if anything, there seem to be even more signs of investors looking to build up independent outfits: among the latest, the mobile ad network madvertise has announced a second round of funding worth $10 million.

The funding comes from new investor Blumberg Capital, who is joining ongoing investor Earlybird.

While some ad networks like Millennial Media — and more recently InMobi — are looking to beef up their presence in the U.S., madvertise, which has HQs in both Berlin and San Francisco, seems to be focusing on expanding its presence in Europe.

It claims to be the market leader already in the German-speaking markets of Germany, Austria and Switzerland and says that it will be using the new funds to grow business in other countries in Europe, specifically the UK. Currently, some 35 percent of madvertise’s revenues come from outside the U.S.

That could be a clever strategy if others are not focussed on the region as closely: Gartner predicts that mobile advertising will be a $20.6 billion business by 2015. It believes that Western Europe will account for 25 percent — or $5.15 billion — of that sum.

Madvertise, which delivers rich media and mobile video ads for smartphones and tablets, says that its unique selling point for its ad network above the many other offerings on the market is the technology behind it: it claims to be able to deliver ads on a site-specific ads to within an accuracy of 50 meters of a target location — “unique in Europe,” it says.

It also claims to have algorithms that are better than competitors’ offerings at matching ad inventory with relevant advertising. A recent developer fund launched by madvertise of €5 million, created to lure new customers to its platform, offers publishers and app developers 100 percent of revenues from ads displayed on mobile apps or mobile websites.

Madvertise says that its revenues in the first half of 2011 grew by more than 300 percent — although it has not revealed actual figures detailing what that revenue currently is.