Digital local advertising network Addiply has received what is understood to be a six-figure investment from the Finance for Business North East Proof of Concept Fund.

The fund is managed by Northstar Ventures and backed by the European Regional Development Fund, European Investment Bank and One North East.

According to North East Finance, the fund is intended to support "early stage technology businesses".

Addiply enables publishers to choose their own advert placement and set their own prices, either using a cost-per-thousand (CPM) or pay-per-click (PPC) model, or by offering a text or display advert for a week or month at a time.

Publishers keep 90 per cent of the revenue generated, with the rest divided between Addiply and PayPal.

Founder of Addiply, former regional football journalist Rick Waghorn, says the investment will enable him to take his business "to the next stage".

He told this could include bringing his idea of an automated commission tool to life.

"What we clearly need to recognise is that we have to lift the burden of sales off individual journalists, specifically in hyperlocal start-up business," he said.

The "crowd selling" idea would mean publishers could agree a commission rate from the 90 per cent stake, for third parties who bring forward advertising opportunities which are approved by the publisher.

"Our aim is to offer a simple, transparent solution to one of the great conundrums of our times – how web publishers can better monetise their online presence and gain greater reward for their publishing efforts," Waghorn said in a release.

"We're not setting out to be the new Google AdSense – rather we believe we are just one part of a new digital age of community engagement and collaboration."

Addiply has also announced the appointment of its first full-time employee, blogger Louise Northwood. She will work to forge links with potential advertisers and community publishers as well as building a network of affiliates, the release added.

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