After raising $2 million in April, Chirpify has secured an additional $4 million in Series A funding to bring the social commerce platform to the sports, music, and media companies that are looking to monetize live events and TV shows.
Chirpify’s in-stream commerce tool lets users buy, donate, or receive free items directly on Twitter, Facebook, and Instagram by replying or leaving a comment to the merchant with the words “buy,” “donate” or “gimme.”
Ever since Nielsen partnered with Twitter and Facebook on a social TV rating to measure conversations about television shows and brands on the second screen, advertisers have been looking for ways to boost the value of their online campaigns.
Although companies are generally able to attribute online sales to social media ads and consumers who organically mention brands to their friends, these numbers are typically estimates based on referral traffic.
During last year’s holiday season, Addshoppers.com found that social media mentions of a brand were worth an average of $2.04, with Facebook leading the pack in share of overall revenue and Google+ generating the highest dollar amount per share. In a recent survey of mothers commissioned by D.C.-based MtoM Consulting, one in three moms ranked Facebook as their most influential social media source and 96 percent said they have used the network to make purchases.
Allowing customers to buy products from within their social networks is a more direct approach, and one that’s picking up steam. Recently, American Express partnered with Twitter to connect card holders with deals on Amex gift cards, Kindle Fire tablets, and other items.
Since launching in 2012, Chirpify says it has added an average of 300 new members per day and boasts a 4 percent conversion rate for clients including Adidas, MasterCard, the Portland Trailblazers, Green Day and Snoop.
The lineup of new investors in the Portland, OR- based company includes Saturn Partners, whose managing partner last year invested in the social marketing platform MarketMeSuite; Provenance Ventures, which focuses on the media and communications industries; and Idan Ravin, a personal trainer who works with NBA players and college hopefuls.
“Chirpify’s new investors are highly strategic as they provide expertise in vertical markets that we consider to be perfect targets for our technology—including sports, music and media,” said Chirpify CEO Chris Teso in a statement. “We see a tremendous opportunity to leverage social as the point of conversion for our clients’ crosschannel campaigns.”
Combined with funds from other investors including Voyager Capital, angel investors Geoff Entress, BuddyTV CEO Andy Liu, former Facebook executive Rudy Gadre, HootSuite CEO Ryan Holmes, and TiE Oregon, Chirpy has raised a total of $7.3 million.