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Skyscraper Raises $500K Seed For Direct Online Ads Sales For Bloggers

December 3, 2012

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San Francisco-based Skyscraper has raised $500K in seed round led by Stocktwits founder and CEO Howard Lindzon and Tom Peterson of Social Leverage.

Skyscraper has built a tool for bloggers to sell their inventory to advertisers. It’s a fairly crowded space with companies like iSocket, BuySellAds and Komoona here, as well as enterprise tools for larger sites.  iSocket recently raised $8M.

We get the interest in the space. Bloggers tend to think that there are advertisers that are interested in buying direct from their site but they don’t have an easy easy way to promote and fulfill that. The challenge is that bloggers in our experience often don’t understand how online advertising works as they are new to it. Most ad spend is done via agencies that need to buy in bulk and prefer to do so via ad networks and programmatic buying. That means that while it can be fairly easy to get sign-ups retaining bloggers we imagine can be hard once they realize earnings are disappointing.

We like the interface and the team and expect that at some point they will need to become an ad network of some type, probably plugging in RTB.

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