Dive Brief:
- Israeli startup Mabaya has attracted $2.25 million in venture funding to accommodate demand for its advertising tools.
- The company’s technology allows brands to “bid” for online “shelf space,” helping display sponsored products related to user searches and behavior.
- Shop Direct and the South American marketplace site Mercado Libre use Mabaya to deliver sponsored results alongside search results.
Dive Insight:
Mabaya wants to help online retailers and marketplace sites monetize their online shelf space, similar to the way consumer packaged goods brands pay more to put merchandise at eye level in grocery stores. The startup recently closed a $2.5 million funding round led by Israel’s Lool Ventures to satisfy demand.
The company allows brands to bid to promote their products in online stores, in effect paying to access ad space that is better targeted to the end user’s experience and search history. Retail sites such as Shop Direct and Mercado Libre use the technology to sell sponsored space.
With additional capital, Mabaya may soon be able to bring more revenues to smaller hosting sites, similar to the way big platforms such as Google and Facebook have profited by using their data to serve more targeted ads.
