Technology developer Tinybeans (ASX: TNY) has announced its largest contract to date, inking an advertising deal with international toy giant Lego Systems Inc for its namesake photo sharing platform.
Under the deal, Lego will advertise its Duplo products on the Tinybeans ‘modern family album’ app, targeting families of toddlers and pre-schoolers in the United States.
Although the financial value of the contract has not been revealed, Tinybeans said the deal surpasses its previous record marketing campaign made in February with a US-based life insurer for more than $200,000.
Tinybeans chief executive officer Eddie Geller said partnering with such an iconic brand “proves the immense value of Tinybeans to brands in our space”.
“Tinybeans’ smart and agile analytics will empower us to target and share the benefits of Duplo products with the right families to help their child’s development and reinforce Tinybeans’ growing power as a trusted source of child-related product recommendations,” he said.
“Beyond the exciting partnership strategies, this contract will further drive to our goal of getting to cash flow positive through calendar year 2019,” Mr Geller added.
According to Tinybeans, revenue will be CPM-based (cost per thousand impressions) like traditional advertising campaigns with payment due monthly.
New brand partners
This latest deal comes after the company’s announcement earlier this month that it had signed another six new US-centric brand partners onto its platform.
Together, the six contracts are expected to generate more than $230,000 in revenues through 2019 with partners including Goddard Schools, Eargo, Gobble, Bright Cellars, a “global imaging brand”, as well as a repeat campaign inked with Macmillan Kids.
Tinybeans described the companies as “high-quality partners” that further demonstrate the value of the proposition and power of the Tinybeans platform for leading companies targeting parents and families with children at certain developmental stages.
Tinybeans has a user base of 3 million members and more than 1.1 million monthly active users in over 200 countries.
The company generates revenue through brand advertising, premium subscriptions and printed products.
Tinybeans shares surged 75% to $0.70 on today’s news by early afternoon trade.