“…small businesses are the backbone of our economy and the cornerstones of our nation’s promise.” Barack Obama via The Hill.
Earlier this month, Adstrix raised $550K in seed funding. Adstrix is a cloud based advertising marketplace platform that aims to help media companies leverage their advertising offering for small and mid-sized businesses.
The recent spike in advertising solutions and revenue possibilities has led most 3rd party vendors to go for the bigger brands and larger payday. Consequently, small businesses with tight marketing budgets have been turned off by the larger commitments, but Avi Schneider at Geektime points out that the sum of these SMB parts should not be overlooked. “According to the US Census Bureau,” Schneider notes, “companies with less than 20 employees make up close to 90% of all US employee based businesses. Companies with under 500 workers make up close to 99%. Furthermore, small to midsized firms are responsible for close to 50% of all US non-farm GDP.”
So the SMB advertising market is still untapped; but why? One reason might be that smaller businesses depend on finite local markets, but local advertising is still an elusive and enigmatic science. Up until now, online local advertising companies have functioned much like the yellow pages: put up some sort of value proposition with little context to an uninformed audience, a.k.a. Spray and Pray. Only, it’s far more expensive, and SMBs have caught on. Companies like Supermedia and Dex One who specialize in online local advertising are down nearly 100% since they opened.
Adstrix want’s to change this. According to the company’s interview with Geeknet, Co-Founder Guy Amos not only wants to make the entire media buying process easier and more affordable, he hopes “to create a marketplace for both SMB’s and larger companies that will offer, among the usual online media buying options; recommendations, measurement tools and even offline media purchasing and recommendation possibilities.” Despite the recent digital craze, Adstrix believes offline tactics are still vital to the advertising process, especially for SMBs, but need to be aligned with the goals and measurements of a brand’s digital efforts. Their solution is a holistic, cross-platform engagement package that aligns the objectives and learnings of print, web, and mobile campaigns.
Making an easy, all-in-one platform for small businesses isn’t just a good idea, it’s an inevitable next step. The challenge will be the decentralized and constrained nature of SMBs. If Adstrix can pull all the pieces together, they could have one robust business model going to market.