Today Mountain View, CA-based Reduce Data launched its advertising analytics and optimization platform, and announced that it has raised $500,000 in seed round funding from undisclosed private investors. The company is looking to target smaller performance advertisers that lack the necessary tools to quantify digital ad spends resulting, aiming to help them understand where their ad dollars can get the most traction.
Founder Asif Ali had the idea after previously building and selling a mobile ad network spread across 22 countries, which has since rebranded to Komlimobile. “The goal is to help advertisers have a single point solution to track their cross-network campaigns…and build data models in real-time and optimize them,” said Ali in an interview with BetaKit. “Reduce Data functions as an independent audit system…providing detailed information on where advertisers are wasting money.”
The company’s platform runs as an independent analytics service that lets its users track their ad campaigns through a number of pixels, including impression pixels, landing page pixels, and purchase pixels, in addition to ad tags. It then helps advertisers identify repeat users and measure user retention, and will audit campaigns to determine if the traffic driven is within the target segment and valid, or if they were exposed to click fraud and the like. Advertisers can also see two different sources of traffic to better segment users, and lastly use all the data to optimize their ad spend through recommendations the platform generates.
Currently, Ali said they will be charging users based on a traditional CPM model, but after gaining traction the company wants to negotiate a given percentage of total ad spend budgets. “Our goal is that if you spend 10 percent with us, we’ll help you identify the 30 percent you’re wasting. So your net gain will be 20 percent,” Ali added.
From a competitive landscape perspective, there are traditional analytics solutions like Google Analytics, but Ali said 30 percent of smaller performance-based advertisers don’t measure their spend. There are also other solutions looking to target smaller cap advertisers focused less on building brand and more on conversions, impressions, and user acquisition which include Pixalate’s Ad Analytics platform which has a very similar offering and Adstage, a tool that lets users create and manage ads across Google, Facebook, LinkedIn, and Bing.
Ali believes Reduce Data sets itself apart based on its approach to providing end-to-end solutions in analytics, auditing, and optimization, in addition to the team’s experience running ad networks. The company is currently working on adding mobile support, as well as support for social platforms like Facebook and others. With the end goal of helping advertisers optimize their spending, Reduce Data eventually wants to help its users optimize campaigns on the fly rather than wait for the results to come in, something that could make it a favorite among digital advertisers wary of data solely provided by the ad networks themselves.