When Intent and Content Align, Online Ads Suck a Whole Lot Less

Author: John Greathouse
Published: May 11, 2012 at 4:13 am

During my tenure at Expertcity (creator of GoToMyPC and GoToMeeting), one of my responsibilities was leading our online marketing, a role I retained until our eventual acquisition by Citrix. When we launched GoToMyPC in 2001, the rules of online marketing were still being written. Along with GoToMyPC, companies like Netflix, Classmates and ZoneLabs were learning from each other. Since then, the craft of advertising online has matured from an art to a science.

This latest wave in this transformation has been enabled by a number of sophisticated, technology companies, including: Burstly, Coull, Collider Media, GraphEffect, SteelHouse, RingRevenue, GumGum and DataPop. I know these particular companies well, as I am an investor in some of them and an ardent fan of the rest.

At Rincon Venture Partners, we have a laser focus on identifying groundbreaking adtech and business productivity SaaS solutions. When we initially invested in DataPop in 2010, we placed a bet on a serially successful team which had grown up together at DoubleClick, Yahoo! and Overture Services. We believed they would create the next generation of search tools, even if none of us could specifically articulate how those innovations would ultimately manifest themselves.

Fast forward two years - DataPop has not just radically transformed search. Its creative optimization platform is now matching all modalities of online ads to consumers’ intent. This automated coupling of intent and content results in uber-relevancy and ultimately enhances marketers’ ROI. For instance, clients that have implemented DataPop’s platform have generated an average increase in sales of over 40% while experiencing an average 15% decrease in the cost of acquiring such sales. These dramatic results arise from DataPop’s ability to automatically build millions of unique ads per day, each of which reads as if it were handcrafted by an experienced copy editor and not a complex algorithm. Results from some of DataPop’s customers are even more impressive than the averages:

• ABetterStay.com saw leads and conversion rates increase 125% and 72%, respectively, while decreasing its cost per lead by 29%

• Bag Borrow Or Steal is leveraging DataPop’s platform to create thousands of unique ads per day, resulting in a significant sales increase, while improving ROAS by 31%

• A leading online merchandiser doubled its conversions, at a cost significantly lower per sale, as compared to its historical baseline

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Article Author: John Greathouse

John Greathouse is the author of the hands-up startup advice blog infoChachkie (http://www.infochachkie.com) He has held a number of senior executive positions with successful startups which generated more than $350 million of shareholder value. …

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