A tech startup that is focused on helping small businesses place local advertising at lower costs than Google, Facebook and Yellow Pages has got more money. SignPost has raised $3.75 million from Spark Capital in a Series A financing. The SignPost team is pretty proud about it too, they’ve put the news on their blog.
SignPost reveals their new funding on their blog with this statement, “Well, we’re thrilled to say that we’re starting out the month of May with an even bigger bang! As you may have seen we just announced an additional $3.75 million in funding, led by Spark Capital. That’s right, more money in the bank to help us continue growing our company and expanding our reach into new markets.” That’s not all that SignPost got out of a busy April, they secured an executive salesman from AOL Patch which focuses on local content.
The SignPost blog says this about securing Chris DePatria: “But the fun doesn’t stop there. We’d also like to welcome Chris DePatria (AOL Patch’s former head of sales) to our team! Chris will be joining us as the VP of revenue, responsible for our sales operation and revenue strategy, and overseeing and scaling the company’s sales force.”
GigaOM has dubbed the company’s business model as the Adsense for local business. The company is detailed in a post there that describes how the tech startup works as the middle man for small businesses and their advertising needs. Small businesses that need to advertise on a local setting can sign up with a membership with the company for $99 a month.
The SignPost $99 month fee replaces the commission models that companies like Groupon use where they take a lot of the profit from the transactions. SignPost describes their cost model as, “Unlike competitors who charge a 50% commission, Signpost is available for a low $99 monthly fee. Receive access to publishers at a fraction of the price they would charge you directly. Never pay more than 15% commission on sales driven by our partners.”
SignPost works for the SMB by connecting them with 1,200 publishers like AOL Patch, Yellow Pages, EveryDay Health, Google Offers and more. The way that SignPost puts it, “Advertising through Signpost’s platform is intuitive, effective, and cost-efficient. 95% of businesses drive more views, visits and advanced sales on Signpost than any other major advertising platform.”
For small businesses that have been trying to advertise their stores and services on Google Adwords or Yelp they might want to take notice with one of the biggest advantages of SignPost. SignPost claims that if small businesses use them for their advertising needs they will get 95% more views, visits & sales per month than the average local campaign on Google Adwords or Yelp.
More Information about SignPost:
Signpost is a leading online advertising service that connects local businesses with new customers. We’re proud to offer an ROI-positive advertising solution for independent merchants while at the same time making it easier for publishers to source ads and special offers from local businesses. We believe we’re creating an efficient advertising tool that will significantly change the $20B local advertising industry.
Signpost is located in New York City and is funded by Google Ventures, Spark Capital (Foursquare, Twitter, Tumblr) and a group of accomplished angel investors who are experts in both the small business industry and the online marketing realm, including Jason Calacanis (Mahalo, Launch Conference), Jack Herrick (eHow) and Thomas Lehrman (Gerson Lehrman).
Signpost – The Most Effective Local Marketing For Small Businesses
Signpost creates an online store for local businesses such as restaurants, salons, gyms and more. With instant access to millions of customers on sites like the Yellow Pages, AOL and Google our unique approach is more efficient and less time consuming than any other form of online advertising.