As behavioral measure find themselves more integrated into our online advertising methods, more ad networks and companies are looking to algorithmic methods for targeting their ads. A company that uses predictive algorithms, Adchemy, has raised $19 million in a third round of funding towards this end. This brings the total amount raised by Adchemy to $27 million, and this latest round of funding will reportedly go towards increasing its workforce and rolling out new products.
In focusing on career/education and financial services, Adchemy deals with two of the most popular areas for online advertising. According to VentureBeat, the startup has a comprehensive library of data on things like “ad size, ad keyword structures, genre of web site, and the anchor text of a page all affect how well an advertisement performs. It has found, for example, that ads for universities don’t do very well on career sites, but do better on weather or astrology sites.”
Additionally, Adchemy also looks at the type of data you’ll typically find for affiliate programs, such as how many clicks turn into purchases. Over time, Adchemy can determine which leads are more likely to give advertisers a good ROI versus those that aren’t as promising. This lets companies charge different prices per lead, and looks to improve the online advertising process overall.
Will it work towards an overall shift in the online advertising industry? Some of Adchemy’s methods and benefits are along the same lines as what widget ads are beginning to provide from the onset of their campaign offerings, and an increasing number of ad networks are incorporating more behavioral statistics in order to project the best placements for your ads across the web.