Local startup Datalogix raised a $25 million Series B round to provide offline purchase data to online giants in a deal announced last week. This round brings the company’s total funding to $40 million, and includes repeat investors General Catalyst, Costanoa Venture Capital and Sequel Venture Partners.
[ibimage==21899==Large==none==self==ibimage_align-center]
Datalogix is now a 250-employee company, growing in leaps and bounds to bolster its ROI information to the Internet’s biggest brands. According to TechCrunch:
“The company collects enormous amounts of offline purchase data straight from stores with customer loyalty cards like grocers, and partners with data brokers to get even more. Datalogix says its treasure trove includes data on almost every household in the U.S. and $1 trillion in consumer spending. The company packages up the data about what you buy into anonymous profiles, and sells access to big publishers, including Google, Facebook and Yahoo, as well as scores of ad exchanges. This lets them target ads based on what you buy offline, and then see how much more of a product you bought after seeing an ad for it. Publishers can then calculate how much more money its advertisers earned than spent, and use this ROI data to convince them to buy more ads.”
For online publishers, this kind of proof of effectiveness is invaluable. By proving that brands’ ads online are driving sales, publishers can charge more for those placements. Despite the decline of print publishing, advertisers have been hesitant to spend too much online because the potential ROI of doing so was unclear. However, Datalogix seems to have the tools to make the case for brands to dedicate more ad spend online.
Visit Datalogix's website and check out their BID profile.
[ibimage==21874==Original==none==self==ibimage_align-center]