Sick of banner ads? You’re not the only one. That’s why Dynamic Signal, a company that splits its HQ offices between Chicago and San Francisco, is betting on word of mouth as a better online marketing tool. Their work in this area just earned them $13 million in Series B funding in a round led by Venrock that also includes Time Warner and others.
“We are investing in expanding our technology and bringing on more developers,” says Jim Larrison, GM and co-founder of Dynamic Signal. “We also are focused on partnering with new data and social solution vendors. We are expanding our strategy and sales teams.”
Dynamic Signal gives brands the ability to manage and conduct word of mouth programs through their fans. Its website dismisses 2011 as the year of “likes,” labels 2012 as the year of “engagement,” and touts 2013 as the year of “amplification.” The message is clear: Brands need to turn fans into brand ambassadors, and fast.
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“McKinsey showed that word of mouth is the ‘primary factor’ behind between 20 percent and 50 percent of purchases, with a particular relevance in relation to expensive products and first-time acquisitions,” Larrison says. This makes it an effective method for product and service marketing, and Larrison says it’s the best way to break through the noise of traditional online media advertising.
This funding follows the recent launch of Dynamic Signal’s mobile platform. Larrison says they are focused on expanding into new markets, while continuing to invest in the entertainment, consumer products, and lifestyle brands. Additionally, he says Dynamic Signal is looking to move into B2B, SMB and issue advocacy. And if that weren’t enough, the company is also planning to expand services beyond the 20 countries it already supports.
“We also will be investing in employee engagement platforms that allow for brands and marketers to harness the tremendous collective value of their employees to get the word out socially,” Larrison says. So the question is: Would you tweet for your company?
Visit Dynamic Signal’s website and follow them on Twitter at @dynamic_signal.
