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Online services marketplace Airtasker (ASX: ART) has struck its second media-for-equity agreement in as many weeks, raising $5 million in the form of media inventory with broadcast and on-demand audio group ARN Media Limited (ASX: A1N).
The deal is very similar to one it secured with outdoor advertising giant oOh!media (ASX: OML) in late June, which included $6 million worth of inventory in exchange for a $5 million convertible note.
The bonus $1 million in inventory is missing from the deal with ARN but otherwise it is the same, bolstering Airtasker's media reserves over two years with access to the media company's 58 radio stations including KIIS FM, Pure Gold and CADA, as well as fast-growing digital entertainment platform iHeartRadio.
Once the convertible note reaches maturity after two years, Airtasker can choose to either convert it into shares at a 10 per cent discount to the 30-trading day volume-weighted average share price, or repay the amount in cash.
"We are thrilled to be building on the momentum of our global media partnership strategy by partnering with ARN and their enormous audio network," says Airtasker CEO and co-founder Tim Fung.
"With podcasting and digital radio more popular than ever, audio is having a huge renaissance and presents a massive opportunity.
"The sheer ARN audience numbers - including for Kyle & Jackie O and Will & Woody - will amplify the stories that come with millions of tasks completed each year in the Airtasker community."
Following two years of reduced marketing spend for Airtasker, predominantly across digital media, the latest two agreements will support an increased brand focus through continued and complementary online marketing strategies, including search and social.
"This partnership, combined with our recently announced agreement with oOh!media, brings our available Australian media capital to $11 million from both partners," says Fung.
"This follows on from our $6.7 million Channel 4 media partnership in the UK in June 2023, which is already delivering results.
"As part of our global media partnership strategy, our agreement with ARN represents an appealing capital-efficient way to drive growth. We can’t wait to get moving."
ARN national agency sales director Angus Leech says the company is thrilled to be welcoming Airtasker to the ARN network in this way.
"This audio partnership is representative of the types of long term, multi-dimensional relationships that we aspire to with clients," says Leech.
"Mutually beneficial by nature, the partnership will deliver the brand results that Airtasker seeks, while also allowing ARN to get closer to the community of listeners that we create content for each day."
Before taking this approach in the UK, Airtasker partnered up with Seven West Media (ASX: SWM) - a model it claims has lifted revenue growth by 20-fold.
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