Mobile marketing company Zoove has raised $5.2 million of an expected $13.2 million round of equity and securities, according to a regulatory filing. It plans to use the money to continue developing technology to deliver advertising messages via email, text and rich media messages.
Based in Palo Alto, Zoove is known for its StarStar Dialing system, which allows people to get a message from a particular company by dialing short numerical codes. For example, companies using StarStar can put particular codes on billboards or in print ads, urging people to call in order to get a deal on a product or to learn more information. This model of demand-response marketing allows companies to gauge audience engagement with campaigns.
Because it's the consumer dialing a particular number, the system is completely opt-in. StarStar isn't used by advertisers to spam customers of particular operators. The format the codes dialed are usually ** and then the name of the brand being marketed. Zoove gives the example of a production company advertising a new movie. Ads for the film tell people to dial ** followed by the title of the movie, and when they do, a trailer for the feature is sent directly to their smart phones within seconds. Other companies have used the system to send coupon codes to prospective customers.
The company raised $15.7 million in a third round of venture funding last March. Its backers include Cardinal Venture Capital, Highland Capital Planners and Worldview Technology Partners.