with acquisition of analytics firm
ince the day the first ad appeared on the Internet, the argument over the effectiveness of digital advertising has never subsided. If anything, the debate has intensified with the proliferation of digital devices, from desktops to mobile phones to tablets.
And the day after the first digital ad debuted is probably the day the first digital measurement service opened for business.
Today, there is no shortage of businesses offering to track clicks and page views in an effort to quantify the real value of a digital ad campaign. But executives at Datalogix believe they've got a better way, and judging by the company’s growth, they may be right.
Datalogix, headquartered in Westminster, uses both online and offline consumer data to help clients reach targeted audiences across different platforms, including display, video, mobile and social media. In addition to digital analytics, it measures actual in-store sales to determine the impact of digital ad campaigns on websites like Facebook and Twitter.
Essentially, Datalogix links cyberspace to real space, and the glue that connects them is data. The company says it has purchasing data on almost every household in the U.S., representing $1 trillion in consumer spending.
The recent Facebook and Twitter IPOs have made that data even more valuable as both social media titans intensify the hunt for ad dollars. Datalogix has partnerships with both companies.
Datalogix, meanwhile, gets to play both sides of the board. Mega-sites like Facebook and Twitter want the data in order to target specific audiences and convince advertisers to buy space, while advertisers want the data to ensure they are getting a decent return on their investment. For Datalogix it means revenue coming in from both ends of the pipe.
The company was founded in 2002 and today boasts annual sales of more than $100 million and growing. In April, the company raised an additional $25 million in Series B funding, bringing total investment to $41.5 million since 2009. To accommodate growth, the firm announced plans last October for a 20,000 square-foot expansion and renovation of its Westminster headquarters.
Moving right along, the company last month announced the acquisition of Spire, a Connecticut firm that provides shopper marketing and analytics for regional grocery chains. Those supermarkets have a combined database of 30 million households — a third of all households in the country, according to a report on the AdvertisingAge website.
Spires' technology helps companies examine data from customer-loyalty programs, mostly those of grocery stores. Datalogix CEO Eric Roza is hoping to move more of that advertising into digital.
"Spire is a natural fit for Datalogix as we strengthen our leadership in helping clients use data-driven marketing to connect their digital campaigns to sales," say company officials. "Spire's direct retailer relationships will complement our existing third-party data partnerships, increase our scale, and enhance the intelligence, analytics, and services we offer clients."
The acquisition brings the firm’s total workforce to about 350 nationwide. Datalogix also bought Boulder-based Connection Engine, an analytics software company, in 2012.
In other company news, the firm recently added Harvard Business Professor John A. Quelch to its board of directors. Quelch has served as a director of ten publicly listed companies in the U.S. and the U.K.