While you're waiting for the person in front of you to unload their cart and bag their groceries, chances are your eyes are probably drifting across little walls full of National Enquirers, bubble gum and batteries.
Austin startup Popspots sees more opportunity there. Using smart displays, the company shows video ads to shoppers, while the device’s camera and software scans for out-of-stock items and other store data in the background. That can help store managers and marketers track how their commercials are impacting behavior in stores.
Popspots announced Tuesday it has raised $5 million in Series A funding to expand its operations with new customers and go beyond the checkout lane. The investment was led by Austin venture capital firm Silverton Partners, with support from other private investors and Capital Factory.
A new SEC filing shows that Silverton Partners Principal Roger Chen is on the startup's board of directors.
Popspots was founded in 2016 and formally launched last year by CEO Marlow Nickell, COO Donald Oelke and CTO Edward Cates. It won $25,000 in equity-free funding from MassChallenge Texas in 2018.
It has 25-plus retail partners. Its in-store digital displays, which operate its Grocery TV ad network, have featured ad partners including Pepsi, Red Bull, Rerrara, Netflix and others. And its website shows 500-plus locations across 30 states where spots on the Grocery TV network are available.
"Out-of-stock products cost retailers billions each year, so we created a product that not only reduces losses, but also encourages sales at the checkout," Nickell said in a statement. "We chose that location because every customer visits the checkout and spends more time there than any other area of the store."
