Ad-buying ‘Trivago’ takes bookings

George Papadopoulos’s ad-tech start-up, Adfomo, is vowing to simplify the ad buying process.

Adfomo co-founder and former WIN Corporation chief executive George Papadopoulos.

George Papadopoulos’s ad-tech start-up, Adfomo, is vowing to simplify the ad buying process.

Marketing executives can buy ad space on Adfomo’s automated media marketplace and thereby bypass lengthy negotiations with ad agencies, the former WIN Corp boss said.

“We are the Trivago of media,” Mr Papadopoulos told The Australian, in reference to the hotel search company. “We cover everything from TV, radio, outdoor, newspapers and magazines.”

Adfomo cost about $2 million to set up and is looking to raise up to $5m to finance its expansion, after launching last month.

The Melbourne company has secured inventory from 60 media brands worth more than $40m and partnered with companies ­including Fairfax Media, Tonic Media and Civic Media.

It is free for ad sellers to list their inventory on Adfomo but it takes an undisclosed percentage fee on the inventory sold.

“We have more than 5000 deals on the platform right now,” Mr Papadopoulos said.

The company is targeting small to medium-sized businesses that are looking to promote their wares but can’t afford the services of an ad agency. “The really big deals are ­always going to be done by the agencies,” he said.

Many of Adfomo’s clients said they were surprised by how “cost effective” advertising could be, he said. “That’s been a real eye-opener. That really shocked us.”

Adfomo’s clients wanted to try things “on the quiet” so they could test a particular market and ­experiment with a mix of things, he said. “Because we’re not owned by any media company or anyone in particular other than myself, really, they feel comfortable to just experiment, so we’re seeing a lot of experimentation with buying.”

Mid-range outdoor advertising such as billboards in the ­suburbs were particularly popular with its clients, Mr Papadopoulos said, adding that they were “very cost ­effective”.

The outdoor advertising market is con­solidating this year, with French giant JCDecaux buying APN Outdoor for $1.09 billion and oOh!Media buying Adshel from Here, There & Everywhere for $570m.

Mr Papadopoulos is best known for his time at regional television broadcaster WIN, where he was chief executive for five years until April 2008. From there he went to work at Silicon Valley’s Zillion TV for just under two years before ­returning to Australia to work as the technology director at home entertainment retailer JB Hi-Fi for five years until September 2015.

Mr Papadopoulos co-founded Adfomo with Rob Jeschofnik, the company’s chief technology officer. The pair worked together at JB Hi-Fi.

The company has about 25 ­investors, with Mr Papadopoulos the biggest shareholder, with a 25 per cent stake. The other major investors are former Clemenger chairman Ron Barnacle, Blue Ocean Equities director Peter Gray, Julian Glynn, who is also Adfomo’s chairman, and Peter Butterss, founder of Information Systems Employment Services.

Down the track, Adfomo will look to expand to Singapore, New Zealand, Britain and the US.