ITV PLC (LON:ITV) has unveiled an investment in what3words, an app that divides the entire world into three-metre squares each with a unique three-word identifier code, as the first move by its Media for Equity programme.
The FTSE 250 broadcaster said it is acquiring a minority stake in what3words valued at £2mln in return for advertising inventory, while also maintaining an option to invest a further £2mln.
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Firms using what3words include auto brands such as Mercedes-Benz, Ford, the AA and taxi firm Addison Lee as well as delivery firms such as Hermes and BJS. Hundreds of emergency control rooms in countries such as the UK, India and South Africa also use the technology to reduce search times.
The Media for Equity programme involves ITV taking minority stakes in early-stage digital and direct-to-consumer businesses, alongside venture capital investment, in return for advertising inventory across ITV’s channels and its ITV Hub streaming platform.
The firm said the initiative will serve as an opportunity for early-stage businesses seeking to build scale through TV advertising alongside a strategic media partner. The initiative is led by Niko Waesche, a venture capitalist who co-founded German Media Pool, the country’s leading independent media for equity fund.
"We are always exploring new and creative opportunities to introduce emerging brands to TV advertising. This new equity scheme marks an opportunity for ITV to invest in and support entrepreneurial consumer-focused companies, whilst diversifying and expanding upon our existing clients and relationships”, Kelly Williams, managing director of ITV Commercial said in a statement.
“This initiative will also demonstrate to digital-led businesses the power of ITV's weekly reach of over 40 million people, as well as the storytelling and brand-building capabilities of TV. We are thrilled that our first investment is a leading UK-based tech company which also supports public services", he added.
Shares in ITV dipped 0.3% to 126p in early deals on Thursday.