AdTech startup Reduce Data launches an algorithmic marketplace for marketers
The AdTech industry is moving at a fast pace, while the advertising industry is poised to grow to a market size of $25B a year by 2016; it is no surprise then that companies around the world are pushing to get a piece of the pie.
Founded by Asif Ali in 2012, Reduce Data is a company based in the US and Chennai, that has launched its algorithmic marketplace. “We've been launching products to create a disruption in the advertising industry and this latest move is a step further in that direction,” says Asif.
The marketplace allows advertisers to use ReduceData's (free) algorithms or buy third party machine learning algorithms and run A/B tests on campaigns. With the algorithmic marketplace, advertisers can get significantly better control over optimization using algorithms. They can use one or more algorithms on campaigns based on various goals and get significantly better ROI.
At the core, Reduce Data is a programmatic advertising product (see how they have completely pivoted once). “This is a continuation of our programmatic advertising platform and is a feature that provides more control in the hands of marketers. Marketers can use these tools to run A/B tests. They can use our algorithms as well as third party paid algorithms to evaluate performance and control the improvements based on one or more goals,” says Asif.
ReduceData raised $500k when it started and has been building from there. “We have more than 30 customers at this moment of time and many of the primary customers are ad agencies. We are servicing customers like McDonalds, Dish TV, Rackspace, Amazon Local etc through agencies,” says Asif about their clients. Having been in the space for a while, he also shares some observations:
- Performance/Results have become extremely important even in display advertising
- It is becoming harder for startups to break into the ad tech business thanks to high costs, monthly minimum guarantees
- Despite the above mentioned point, there is ample opportunity in display particularly in programmatic advertising as the world is continuing to shift from traditional display (publisher direct / ad networks) to programmatic advertising and automation
Reduce Data has been coming up with updates like the workflow automation tool, better analytics, etc. for marketers. “We have been busy disrupting the display advertising space with the continuous focus on building a world class advertising platform that simply delivers the results that marketers are looking for,” adds Asif. The company is also looking to raise the next round of fund to scale up and build a solid sales team.
Website: Reduce Data