Kinetic Social Raises US$17.5 Million to Ramp up Creative Studio
What: Social ads Company Kinetic Social has raised US$17.5 million funding in venture cash from Multiplier Capital and Bridge Bank to ramp up its content management and creative services through an internal outfit the company is calling Creative Studio.
Why it matters: This brings Kinetic’s total funding to US$38.5 million. In 2013, the company raised US$8 million in Series A and US$18 million in Series B in 2014.
Social ads Company Kinetic Social has announced it will use the US$17.5 million funding in venture cash from Multiplier Capital and Bridge Bank to ramp up its content management and creative services through an internal outfit the company is calling Creative Studio. This brings Kinetic’s total funding to US$38.5 million. In 2013,the company raised US$8 million in Series A and US$18 million in Series B in 2014.
With Creative Studio’s expansión, Kinetic aims to capitalize an approach CEO Mathis called “one part technology, one part human touch.” The company is also planning to use part of that funding to further develop the social data-management functionality that underpins its media optimization technology.
In addition, the company is evaluating possible hirings, especially senior-level roles centered on product management for its social DMP and its creative studio. The company is aiming to up headcount from 80 to around 100 by Q4.
A lot of our growth is coming from agencies and advertisers reallocating a portion of the budget they would otherwise have spent on display - Kinetic Social CEO Don Mathis
“A lot of our growth is coming from agencies and advertisers reallocating a portion of the budget they would otherwise have spent on display,” said Kinetic Social CEO Don Mathis.“We’re seeing a growing consolidation around content management and media execution.If we wanted to achieve profitability, we could grow at a slow rate, or we can continue to invest in growth. We’re choosing the latter,” Mathis added.
“Advertisers need a lot more creative than they realize when they first starting engaging with social platforms,” said Mathis, who stressed that Kinetic’s creative efforts are meant to complement, rather than replace, the work already being done by agencies on behalf of their clients.“We’re not getting into the business of coming up with strategic creative messages that apply across all media,” he said. “This is a tactical approach to creative. The creative agency understands how a campaign should look and feel and we know how to implement that in a social setting.”
Platform-specific creative seemed to be on demand, especially as social players like Pinterest and Instagram start aligning themselves with bottom-of-the-funnel activities.According to Mathis, Pinterest is “almost more of an ecommerce visual search engine than it is a social media network.”
In June, followed roughly two weeks later by the official launch of its ads API, Pinterest added a buy button while at that time Kinetic was named as one of eight Pinterest Marketing Developer Partners. Kinetic is also a Facebook Marketing Partner and a Twitter Official Partner.
Headquartered in New York, with offices in Toronto, Chicago and San Francisco, Kinetic has plans to open another location in Singapore by the end of the year to handle new business in the Asia Pacific region. Kinetic’s clients include BMW, Mars, H&M, Delta, American Express, Snickers and Lancome.