What do you know about the controversial new ad network Lubbock?

With the release of the first quarter of 2018, ad sales are up, but so are the dollars being spent.

The new ad sales network Lubeck, announced this week by Lubek, a company founded by Lubbocks former CEO, is the newest competitor to the dominant Lubbocking-based ad sales company, which already has about $2.4 billion in annual revenues and a $7 billion annual budget. 

Lubeck was founded in January 2018 by Dallas-based company MediaWorks with a $300 million Series A investment from Texas-based Lubekem, which has also been the company’s largest investor. 

The new company will be managed by Locaan, a Texas-owned investment firm, and will offer a wide range of advertising solutions including mobile and video ads, online and digital ad campaigns, direct mail and sponsored content, to name a few. 

With $300m in funding, Lubeek has a $1 billion budget, with another $400 million coming from an undisclosed source, according to Locaa. 

“We’re excited about the opportunity for Lubeks revenue growth,” said Locaapres COO Michael Smith, who has been working with MediaWorks for several years.

“We’ve seen the growth of our business over the past several years and we believe Lube is a great fit for our strategy.”

Lubek is a new competitor to one of the most successful ad sales companies in the country, the $7.5 billion AdAge.

AdAge’s sales of $1.8 billion in Q4 2018, according a report by comScore, is more than the total revenues earned by AdAge and the other leading ad sales firms. 

AdAge has been growing rapidly since its founding in 2007, with revenue rising by an average of 8.4% annually. 

In the past year, the company has grown from a $6.3 million annual revenue to more than $7bn, which is up about 20% year over year. 

But Lubeack will be different than AdAge, according Smith.

“Lubeack has been a leader in the online advertising space for more than a decade,” he said.

“They’ve built out their business and are now expanding to other platforms. 

It’s the perfect fit for us.”

The news of the new LubeK acquisition comes after the ad network’s CEO, Brian McFarland, made headlines last year after it was revealed that he had been secretly paying a woman $30,000 to appear in his ads. 

Despite the controversy, Lubbites political leaders have been supportive of Lubeak.

“It’s a very well-managed, well-established company, and we’re excited to see it continue to grow,” Lubb City Councilman John Cone said at the time. 

Smith said that Lubeax will be a new, independent competitor to AdAge in the ad sales space, and that it will be able to compete on price, speed, and quality of the ad. 

According to Lubeank, Locaad Media will continue to serve Lubbacoastans and the wider Texas market with its high-quality advertising solutions.

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