BEIJING - Mobile marketing firm Velti plc has invested US$3 million in Chinese mobile advertising network Casee in a move to enter China’s nascent mobile industry.The investment gives Velti a 33% stake in Casee (Cellphone Ads Servicing E-Exchange), China’s largest mobile advertising network. For an additional $3 million, Velti has also secured warrants for a 17% stake in the company.
The deal parallels Velti’s ambitions for global expansion. Its services are currently available in 18 markets via offices in Europe, North America and the Middle East, and China will be its first venture into eastern Asia.
“Partnering with Casee gives Velti an early foothold in China’s rapidly growing mobile market, ahead of the Beijing 2008 Olympic Games, as well as the capability to execute mobile marketing campaigns for global brands in this key territory,” said Velti CEO Alex Moukas in a statement.
Under the agreement, Velti and Casee will make their client networks available to each other. For Casee, this includes access to Ansible, Velti’s mobile joint venture with Interpublic Group.
According to Marbridge Consulting, total mobile advertising revenues are expected to reach US$243 million in 2010.