EnterMedia, a leading Russian in-game advertising company raised equity capital from Mangrove Capital Partners and ABRT Fund, announced Mangrove‘s Managing Director Mark Tluszcz at a press conference in Moscow today. Mark did not disclose amount of investment that is estimated to be over $1 million. He pointed to a “depth of technology skills in Russia” and said that Mangrove will do several more Internet investments in Russia in 2008-09. EnterMedia will use the transaction proceeds for technology and business development purposes. The Russian in-game advertising market is valued at $3 million in 2008.
EnterMedia places advertisements in both computer and online games of major Russian computer game publishers and developers. EnterMedia uses its own EgoSet technology to place dynamic ads in flash and casual games. Ten advertisers including mobile operator Megafon, Intel, MDM Bank already place ads based on this technology. The company says it sells ads at $5 – $30 per 1,000 impressions and its Click-Through-Rate (CTR) reaches 11%. EnterMedia also offers BTL and promotion campaigns.
Google acquired in-game advertising company Adscape for $23 million in February 2007. Microsoft bought in-game ads pioneer Massive for over $200 million in May 2006. The leading global independent in-game advertising network and technology provider Double Fusion raised $26 million in a financing round led by Norwest Venture Partners in December 2006.
In Eastern Europe, Mangrove Capital Partners invested in a visual-based search engine Quintura from Russia in 2006 and women’s lifestyle portal Republika Kobiet in Poland in 2007. Mangrove was the first institutional investor in Skype.