Adtech startup builds ecosystem through acquisitions • St Pete Catalyst

Tampa-based Nickelytics has significantly increased its operational efficiencies, expanded its technology capabilities and broadened its market reach with two recent acquisitions.

CEO Judah Longgrear, a St. Petersburg resident, said additional announcements will be made soon. An ongoing $3 million seed round will support the ad tech startup’s growth.

On June 27, Longgrear acquired On Touch Go, a digital marketing company based in Dallas. Nickelytics and its clients now have access to more than 60,000 ride-share screens nationwide.

“It’s a self-service portal where brands can choose the cities and areas they want to focus on and run campaigns without having to talk to a sales rep,” Longgrear said. Catalyst“We were working on it internally, but we came across On Touch Go, which had a great platform already built.”

Nickelytics evolved in 2019 from The Nickel Ride, an ad-supported ride-sharing company. This innovative startup has stayed true to its roots in mobile marketing.

Nickelytics now offers several data-driven out-of-home advertising solutions. Organizations like the Ad Council, Amazon Web Services, and Los Angeles Times used Nickelytics to increase brand awareness.

Longgrear called traditional out-of-home advertising a “broken” and “archaic” process that typically relied on billboards. Nickelytics sells to consumers through delivery robots and ride-sharing vehicles.

On Touch Go delivers geofencing marketing campaigns to rideshare riders via near-ubiquitous in-vehicle screens. Customers of both companies now have access to an expanded range of advertising tools designed to maximize impact and reach.

“There are some macroeconomic issues where we can get companies looking to be acquired at a good price,” Longgrear said. “But also the fact that outdoor advertising is ripe for development.”

Management has traditionally taken a more organic approach to growing Nickelytics. But Longgrear said he began developing a plan to expand into other markets in the spring, which has sparked enthusiasm from strategic investors.

Innosphere Venture Fund and The Players Company – comprised of over 500 professional athletes and investors – began co-leading the startup’s $3 million growth round in mid-May. Additional investors include Techstars and Tampa-based Redwave Venture Partners. “It all works very well together,” Longgrear said.

On June 11, it announced that Nickelytics had acquired Miami-based Signs Printing Solutions. Longgrear believes that integrating the company into operations will streamline packaging production, improve quality control, reduce costs and diversify revenue streams as the print shop will continue to operate independently.

“One of our biggest costs was actually printing and installation,” he explained. “Now we are able to offer it at an even better price.”

Longgrear realized that an acquisition was more profitable than starting his own printing house. He said it would also enable Nickelytics to create packaging on demand and “deliver larger campaigns in less time.”

Rideshare drivers download the company’s app, which collects geolocation data. Nickelytics pays for packaging and installation through its network of more than 600 contractors nationwide.

Drivers make money by presenting ads. They can add a third stream of income by offering marketing screens in their vehicles. Longgrear said they “never pay a dime out of pocket.”

While ride-sharing vehicle wraps remain the company’s focus, Nickelytics was among the first to realize the potential of robotic deliveries. Longgrear said more than 1,000 robots, often found on college campuses, currently support the startup’s advertising campaigns.

“We started working on it probably two years ago when we started seeing the growth of the medium,” he added. “We were very optimistic that it was a great platform to advertise on.”

Longgrear explained that robots typically focus on last-mile deliveries, which are less profitable for drivers. He noted that this reduces emissions and believes adoption will continue to grow due to the value proposition and number of use cases. “I wouldn’t be surprised if we see them here in downtown St. in the near future. Pete and Tampa.”

Longgrear said the company is exploring additional acquisitions and strategic partnerships to bolster its data analytics efforts. He said the overarching goal is to combine “the best of offline advertising with online retargeting and measurement.”

Longgrear recently moved across the Bay from Nickelytics’ headquarters in Tampa and has hired “local talent,” something he expects to continue. He also called it amazing that the region has been cementing its growing reputation as a tech hub over the past five years.

“I’m just so optimistic about St. Pete and the tech and startup ecosystem,” Longgrear said. “We certainly plan to double down and be part of the growth and excitement.”