Programmatic ad tech firm ChoiceStream has announced its raising of $7.4 million in fresh capital funding.
Since switching from a recommendation software company to a digital ad specialist in 2011, ChoiceStream has set its sights on making progress in the area of programmatic ad buying – a market which is expected to hit $32 billion globally by 2017.
The company now offers ad creation, placement and reporting tools within a full-service programmatic media-buying platform and is hoping to fine-tune this solution after closing a lucrative Series B funding round.
Eric Bosco, CEO of ChoiceStream, has confirmed that at least part of the $7.5 million cash injection will be used to develop the company’s survey-based targeting and dynamic creative capabilities.
Part of ChoiceSteam’s service sees brands connected to their perfect audiences via real-time polling technology. Advertisers can then use its ad buying platform to bid on placements which are likely to attract a specific consumer, with all of the process being conducted automatically.
New York-based money management firm Fred Alger Management led the funding round which allowed ChoiceSteam to generate its fresh investment.
In return, Fred Alger Management CEO Daniel Chung will join ChoiceStream’s board of directors as the latter sets its sights on 300% year-on-year revenue growth by the end of 2014.
Chung has branded ChoiceStream as a “leading example” of a company with the management and business model for longstanding success.
The capital-raising effort marked the first time that ChoiceStream has appealed for new investment since restructuring its business. Before then, the company had managed to raise $70 million in external funding after starting out in 2000.
Previous investment has allowed ChoiceStream to expand out of its Boston HQ to open up new offices in New York and Chicago. The company also employs workers to take care of business in San Francisco, Los Angeles, Denver, Dallas, Seattle and Atlanta.