The problem with internet advertising – and there are many – is that while there are plenty of users who interact with ads, the hard part is working out which users are actually the most valuable to advertisers. While the advertising industry normally sends one brand message and blasts it out across all channels, Struq, an advertising platform startup, works out which users show behavioral patterns that make them statistically more likely to purchase. But instead of showing them the one brand message it shows video or display ads most likely to chime with that user. To that end it’s attracted the attention of major backers today, with a significant $8.5 million funding round from Reed Elsevier Ventures, Pentech Ventures and Allen & Company LLC.
The company has certainly garnered attention. It’s already working with 200 of the world’s leading retailers across 19 markets (including Adidas, Hilton Hotels and Levis). Its Ad Personalization platform operates dynamically and in real time. As a result it claims to be able to deliver 12 times higher click through rates than standard retargeted ads and says its platform can generate up to $30 in revenues for every $1 spent in marketing spend.
Sam Barnett, founder and CEO of Struq, says Reed Elsevier Ventures’ experience in big data (an early investor in Palantir Technologies, now the 11th most valuable start up globally), combined with Pentech’s experience in Personalization (an early investor in Maxymiser,), and Allen & Company’s advisory history, will provide valuable experience in scaling the company up.
Kevin Brown, General Partner at Reed Elsevier Ventures calls Barnett “one of the most talented young entrepreneurs in Europe,” which is high praise indeed given the current field of EU CEOs which is probably the best it’s ever been.