Tatari, an analytics platform for buying and measuring advertising, has formed an exclusive partnership with Clearco under which Clearco will provide young companies with up to $10 million for TV advertising, and Tatari will help them grow their brands by spending it.
The novel buy-now, pay-later arrangement comes at a time when direct-to-consumer companies are having more success buying television, and companies like Tatari can provide digital-minded marketers with data to confirm the effectiveness of their campaigns.
“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.
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“Tatari’s deal with Clearco aims to address that sticking point,” Gordon said. “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.”
Since being founded in 2015, Clearco (formerly known as Clearbanc) has invested more than $2 billion in 4,000 online businesses.
“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.”
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Instead of taking equity, Clearco provides funds for media buying for a fee and a share of future revenues.
One of the first clients to take advantage of the Clearco partnership with Tatari is Resident’s Nectar Sleep Brands. Resident has been working with both companies separately.
“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.” said Eric Hutchinson, co-founder and co-CEO of Resident. “Clearco was also a key partner to help fund our marketing spend in the early days of Nectar Sleep without diluting the business."
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Most young companies start slow with TV, but soon become believers, said Tatari’s Gordon, who headed negotiations as U.S. director at Magna Global before moving on to posts at Tube Mogul and Adobe.
“Our clients are growth junkies. They’re addicted to growth and we show them in small doses that TV can work,” Gordon said. “And then once it does, they’re off to the races. If you can show that Bravo works, if you can show that ESPN works, you can spend a million dollars a week.”
Tatari helps make sure the media spending pays off. “We read the data in the moment and take quick action to optimize away from the things that aren’t working and optimize towards the things that are working, and then try to scale,” Gordon said. “There’s more on-demand funding as you need it. It fits well with the way we look at the media world.”
The partnership is also good for Tatari, he said. “It brings benefits to our client and honestly, help us to continue to grow as amazingly fast as we are.”
Program Note: Future's Advanced Advertising Summit is today (April 27), register for free at SpringTVEvents.com. On-demand session viewing after the event available for registered attendees.
