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Digital advertising vendor HookLogic raises $14.3 million
HookLogic places targeted ads on the sites of such retailers as Sears, Target and Staples.
Topics: Bain Capital Ventures, e-commerce technology, funding round, HookLogic, Intel Capital, Intel Corp., Jonathan Opdyke, Michael Barrett, Newegg, on-site advertising, Rakuten.com Shopping, Rebecca Brown, Retail Search Exchange, Sears, Staples, Target, Toys 'R' Us, vendor news
HookLogic, whose technology places targeted ads on retailers’ web sites, has raised $14.3 million, it announced today. The funding will go towards increasing sales, enhancing technology and hiring staffers in its U.S. offices in New York City—with that office doubling in size—and Ann Arbor, MI, it says; HookLogic also has an office in London.
HookLogic enables online retailers to earn revenue from ads placed on their e-commerce sites and advertisers to target their marketing based on a shopper’s on-site activity.
“The biggest value proposition is really about giving brands the ability to gain better placement on retail sites,” says HookLogic CEO Jonathan Opdyke. “The shoppers see only the products they are looking for, which facilitates the shopping experience and ultimately leads to more sales, benefitting brand and retailer."
Intel Capital, the investment arm of electronics manufacturer Intel Corp., led the funding round, with participation from Bain Capital Ventures and Michael Barrett, the former CEO of AdMeld (now a Google Inc. company) and chief revenue officer of Yahoo Inc., HookLogic says. Bain previously invested $9.5 million in the company in 2011.
In February, HookLogic launched its Retail Search Exchange, a marketplace for advertisers to bid on prime ad placements on e-retail web sites, the company says. By the end of the month, 12 e-retailers will be listed in the exchange, with six more slated to offer advertising space there by the end of the year, Opdyke says. E-retailers currently offering ad space on their web sites via the exchange include Staples Inc., No. 2 in the 2013 Top 500 Guide; Sears Holdings Corp., No. 6; Target Corp., No. 18; Newegg Inc., No. 14; Toys ‘R’ Us Inc., No. 30; and Rakuten.com Shopping, No. 40.
Intel also advertises with HookLogic, and was among the first brands to begin using the new technology, the company says. “The Retail Search Exchange has quickly become an incredibly efficient marketing vehicle,” says Rebecca Brown, Intel’s director of media. “The platform enables Intel to promote the products we want and see closed-loop measurement of purchase activity. The return on spend and overall impact have been tremendous.”
HookLogic is on track to double in size this year, CEO Opdyke says, without disclosing revenue figures.