Online advertising is generally terrible and our expectation that ‘information should be free’ has tragically even ended up powering disinformation-filled social networks like Facebook. Many companies have tried and failed to turn advertising into a way to power good causes. What is to be done?
When I met Amy Williams back in 2016, it seemed her idea of a “advertising for good” platform would, like the rest, be doomed to failure. But it just goes to show that it’s usually impossible to predict the success of early-stage entrepreneurs. For the company she founded, Good-Loop, has now closed a Series A round of $6.1M (£4.5M) for its platform which entices people to views ads in order to ‘unlock’ a donation to charity. And there’s more to this than meets the eye.
The funding round was led by New York-based investment fund, Quaestus Capital Management, with additional backing from Scottish Enterprise, impact investor SIS Ventures, European ad tech fund First Party Capital and investment raised on the crowdfunding platform Seedrs. This means Good-Loop has now raised a total of $8.2 million to date. The funding will be used to accelerate the company’s product roadmap, and open offices in New York and Chicago to serve its US market.
As well as also being a B Corporation Good-Loop says its ‘view ads to donate’ model delivers more meaningful brand engagement, cost-free philanthropy from users, and has an ad recall “4.5X higher than the industry standard” says the company. It also says demand for its programmatic solutions has grown 180% in the last 12 months.
Charities on the Good-Loop platform get 50% of ad revenue. Clients include Unilever, PepsiCo, Nestlé, Levi’s, adidas, NBC Universal and Nike. Using this model, Good-Loop claims to have now raised more than $5M for charities around the world, including Save The Children, WaterAid, Feeding America and the WWF.
Good-Loop CEO Amy Williams, who founded the company alongside CTO Daniel Winterstein, said: “At the heart of our industry is an inherent value exchange between advertiser and consumer, and I’m on a mission to harness…