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Millennial Media Triples Sales, Raises $27.5M For More Acquisitions

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Yesterday, we saw one more analyst house put its weight behind the mobile advertising trend. Today, one of the bigger independent mobile ad networks is showing us just how much growth there has been: Millennial Media is today announcing that it has tripled revenues in the last year and has raised a round of funding totalling $27.5 million

Bessemer Venture Partners, Columbia Capital, Charles River Ventures, and New Enterprise Associates participated in this most recent round of funding, which brings equity funding in Millennial up to more than $65 million.

Millennial says that it plans to use the money towards more acquisitions, building on its acquisition of analytics company TapMetrics last year.

Four-year-old Millennial Media says it has mobile advertising reach across 250+ countries, but the U.S. ad network is its largest single operation: it claims to reach 85 percent of all U.S. mobile web users and serves more than 17 billion mobile ad impressions each month. The company also works to create ad networks for third parties that range from media companies with multiple mobile properties; mobile app developers and OEMs.

Recent figures from IDC gave Millennial as 15.4 percent share of the market, a close third ad behind Google/Admob and Apple’s iAd network:

The fact that “other” makes up the single largest share in mobile advertising shows how fragmented the industry remains.

Paul Palmieri, the president and CEO of Millennial, (pictured) notes in a blog post that Millennial distinguishes itself among the larger ad networks by being singularly focussed on mobile advertising, and focussing on different platforms, rather than pursuing it as an adjunct to other services.

But it remains to be seen whether that is a uniquely good thing, or something that might hold it back. Given how small the mobile advertising industry is — it’s still in the single-digit percentage points as a proportion of all digital advertising (let alone advertising overall) — it may be too early to tell.

Important to note that Millennial has not released its actual sales figures for this year, but IDC noted in December 2009 that Millennial was on course to make $35 million that year. If correct, that would put revenues for 2010 at over $100 million.