AdRoll Secures a Whopping $70 Million for Online Ad Retargeting
ADOTAS — You know those ads that seem to follow you online, enticing you to click and purchase that Nike Fuel Band (if it sticks around) or those Nappa leather Prada shoes you’ve previously viewed on a retailer’s website? It’s a good bet that companies like AdRoll, Criteo or Retargeter are working behind the scenes to help brand advertisers recapture your online attention.
Today, AdRoll is seriously amping up its game, securing a massive $70 million round of funding led by Foundation Capital. New investors include Institutional Venture Partners (IVP), Northgate Capital, Performance Equity and Glenmede, who join existing investors Merus Capital, Accel Partners and Peter Thiel. In conjunction with the financing, Eric Liaw of IVP will also be joining the AdRoll board as an observer. Prior to this round, the company had raised a total of $19 million.
“Display advertising spend attributed to real-time bidding is projected to exceed $9 billion dollars by 2017,” said Charles Moldow, General Manager of Foundation Capital. “A very select group of advertising technology companies are poised to capture the majority of that spend. We’re eager to support AdRoll because they offer businesses of all sizes a single platform that unites all of their digital advertising channels and devices.”
With revenues surpassing the $150 million run rate mark, AdRoll serves over 15,000 customers across 100 countries and plans to use the cool $70 million to build out its multi-channel ad serving backbone across tablet and mobile devices. The company touts itself as being “the only company that integrates both Facebook and Twitter retargeting,” and given the huge audiences on these social platforms, it plans to dominate the online ad realm.
“In just a few years, retargeting has become as essential as search engine marketing for every digital marketer,” said Aaron Bell, AdRoll CEO. “The new funding lets us hit the gas on our ambitious vision to more broadly become the one platform for companies to better understand their customers and reach them wherever they go. It’s a pleasure to both bring back the close-knit investor team that has helped us scale and welcome new investors with exceptional late-stage and public experience.”
Ever since behavioral targeting emerged as the dominant technology to better understand online consumer behavior, retargeting has become a powerful way to get interested consumers back into the sales funnel, providing additional avenues to re-engage with a brand for a short time after they have left the retailer’s website.
“There is a noticeable shift happening in the half-trillion dollar global advertising industry,” said AdRoll President and Co-Founder Adam Berke. “We’re moving from an analog era where processes were slow and manual to a digital world where algorithms help make complex decisions and actions take place in 50 milliseconds. AdRoll is at the center of this shift, and we’re focused on bringing the complex technology that enables programmatic advertising to a broad customer base including businesses and agencies of all shapes and sizes. With these funds, we plan to double down on mobile offerings, as our customers want to be able to find the right audiences across multiple devices, and make the platform as easy to use around the world as it is today in the U.S.”
Client Bill Macaitis, CMO at Zendesk, said retargeting with AdRoll is a key technology that his company couldn’t live without.
“One of our most pressing concerns in marketing is how to deliver the right message to the right customer or prospect,” said Macaitis, “and AdRoll continues to give us the best expertise, technology, and inventory sources to accomplish that task. The company has a unique vision and I’m excited to see what’s next for AdRoll.”
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