Early stage venture capital firm EchoVC Partners is backing Nigeria’s S&T Media with $1 million. The capital will be used for expansion, product development, hardware acquisition and recruitment following the successful pilot of the company’s AdPump service in Lagos. Terms of the deal were not disclosed.
S&T’s AdPump is Africa’s only digital advertising network that targets consumers at petrol pumps and has signed a number of exclusive distribution deals with several of Nigeria’s filling station companies including Oando plc, Forte Oil and Total plc expanding its presence to 1,000 stations across the country. In addition, S&T has signed up key advertising clients including Etisalat, Jumia, Smile Communications, House on the Rock, GT Bank and Mall for Africa. S&T Media are also planning to open the digital advertising space to the Nigeria’s SME market by rolling out an online purchasing tool for those with smaller advertising-spend budgets.
According to PwC, Nigeria’s advertising market is currently worth about $500 million a year, and has been growing rapidly at a compound rate of 15.1%. AdPump was launched in 2014 and has secured sole distribution rights for 22-inch in-pump digital screens installed by their teams to provide advertising-supported content to consumers purchasing petrol at the pump.
“We were impressed with S&T Media’s ingenuity in developing new routes to market for advertisers in Africa, namely via location-based digital,” commented Eghosa Omoigui, EchoVC Partners’ Founder and Managing General Partner. “The velocity at which they’ve built a for-Africa product, attracted content suppliers, key advertising partnerships as well as a distribution network with such notable brands, is a combination of their excellent product, as well as the market’s willingness to use targeted marketing methods to reach their end user.”