This announcement was originally covered on NextTV.
Today, we're announcing an exclusive partnership with Clearco (formerly Clearbanc), the world’s largest e-commerce investor changing the way founders grow their business.
Through this alliance, Tatari clients can obtain up to $10 million in quick, affordable capital to fund their growing advertising operations. Advertisers will now have the option to “buy now, pay later” through installment plans offered by Clearco, making it easier to scale media and grow the business.
“The data consistently proves that TV advertising performs for growth-stage companies. When these brands want to scale their investments, the cost of TV media can become a barrier to entry,” said Todd Gordon, VP of Client Development at Tatari. “Tatari’s deal with Clearco aims to address that sticking point. Brands can now fund their TV advertising with quick, sensible financing without having to raise it as venture capital, and we can immediately put that money to work in the form of data-driven, performance-minded TV ad buys.”
With advancements in data science and measurement, TV is emerging as an important channel for growth marketers to find new audiences and drive performance outcomes. A saturated social media market, highly competitive search keywords, and a looming loss of cookies led many DTC brands to turn to TV to find new customers, taking advantage of unique market conditions to reach new audiences.
“In the past year, we’ve seen consumers buy goods and services online, pushing more dollars into e-commerce,” said Andrew D’Souza, CEO & Co-Founder of Clearco. “While a larger market means more ecommerce merchants, advertising still is one of the largest costs for growing brands. And traditional equity-based financing can dilute the cap table. Our partnership with Tatari provides the solution for companies to grow and leverage data-driven practices to TV.”
Clearco and Tatari share a common focus of serving growth-stage digital brands as they scale their operations. Nectar Sleep, one of the Resident group of home goods brands, was among the first to take advantage of new financing options for their TV campaigns. “Performance marketers are always interested in inventory that can be proven to generate outcomes, and Tatari has made it possible for us to hold TV to that rigorous standard.” says Eric Hutchinson, Co-Founder and Co-CEO of Resident. “Clearco (formerly Clearbanc) was also a key partner to help fund our marketing spend in the early days of Nectar Sleep without diluting the business"
“This is a testament to the way Tatari buys media based on measurable, incremental outcomes. This type of financial product, where the return is based on a percentage of revenues, is feasible because it directly funds those outcomes,” said Philip Inghelbrecht, CEO of Tatari. ‘It would make much less sense if the media were just used to buy impressions.”
Instead of taking equity, Clearco offers startup financing for a fee and share of revenue. This alternative model has proven successful for growth-stage companies as they ramp up operations and marketing; Since its founding in 2015, Clearco has invested more than $2 billion in 4000 online businesses.
Watch our LinkedIn LIVE to learn more about our partnership.