GumGum Inc., an advertising technology company that provides tools to analyze and place ads based on content across desktop, mobile and internet-connected TV platforms, has raised $75 million in new funding from
The new capital brings GumGum’s funding total to $122 million. The company is now valued at nearly $700 million, almost tripling its valuation from its most recent funding round in 2019, according to people familiar with the matter.
Government regulations and new privacy rules instituted by Apple Inc. and
Google will limit the ability of advertisers, publishers and tech companies to track users and target ads based on identifiable data. Going forward, marketers will have to revamp their data strategies, while adtech vendors and other companies are hurrying to find alternative ways to reach consumers.
One such alternative is contextual advertising: targeting ads by placing them close to relevant content. GumGum uses computer-vision and natural-language processing technologies to scan and analyze text, images, video and audio to help match ads to content.
“Privacy is global and regulation is global,”
chief executive of GumGum, said in explaining why investors might be interested in the contextual approach.
A number of adtechs that offer alternatives to audience-based ad-targeting are getting traction with investors. Iris.TV Inc., a video-data firm that also provides contextual ad technology, recently raised $18 million in a new round led by Intel Capital. VidMob Inc., whose software analyzes the quality of the creative content in digital ads and uses data to improve performance, raised $50 million in a Series C round in February that valued the company at $290 million.
Founded in 2008, GumGum said it counts more than 100 brands and 1,200 publishers globally as clients. The Santa-Monica-based company will use its new funds to expand its business internationally, including by acquiring other tech firms with complementary tools and services, Mr. Schraeder said.
GumGum is also investing in building out its contextual advertising tech for streaming video and TV, particularly as the sector draws more and more advertising dollars.
As part of the investment, Holger Staude, managing director of Goldman Sachs Growth, will join GumGum’s board of directors. Existing investors include Upfront Ventures, NewView Capital and Morgan Stanley Expansion Capital.
GumGum laid off a quarter of its employees last April as the pandemic forced many marketers to pause or cut back their ad plans. The layoffs hit the company’s advertising and sports segments, which used its software to help brands and sports teams analyze and value sponsorships.
GumGum rebounded later in the year, Mr. Schraeder said, and now employs around 250 people around the world.
“As eyeballs shifted to digital screens and habits changed, we saw an extreme pick-up in our business,” he said.
Write to Sahil Patel at email@example.com
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 14, 2021, print edition as ‘Ad Firm GumGum Raises $75 Million.’