Advertising Startup, TellApart, Raises $13M Funding
An advertising startup that uses a pay-for-performance model, called TellApart, announced today that is has successfully raised $13 million in Series B funding led by Bain Capital, which brought the total amount raised to nearly $18 million.
The company was founded by two former Google product engineers, Josh McFarland and Mark Ayzenshtat. TellApart assigns a Customer Quality Score to each individual customer, based on the customer’s onsite behavior patterns (products viewed, items purchased, etc.). The data is then compiled into a CQScore that distinguishes high value customers from ordinary customers, hence the name, TellApart.
This technique greatly enhanced marketing efforts since ads get targeted to those who spend the most time and money on retail sites. TellApart’s system is so successful that it has a click-through rate of 7.5%, which is ten times the industry average.
Furthermore, the company doesn’t make money unless the business owners do, showing how confident TellApart is in it’s own advertising platform, and offering retailers a risk-free way to try something new. This recent $13 million spike in funding is likely to create large growth for the company, allowing it to continue its success.