Buzzlogic CEO Dave Hills wants the company to be known for more than just being a monitor of social media chatter. The San Francisco company’s $7.8 million third funding round is intended to go towards convincing publishers and advertisers that a “horizontal” approach to online marketing, as opposed to a vertical one that narrowly aims audiences consuming a particular kind of content like women’s lifestyles or sports, is the best way to go.
Hills, who has been CEO for about six months, says that Buzzlogic’s revenue has been growing faster than 50 percent per quarter. The funding was taken less than a year after its $8.8 million second round to fuel that growth as well as create new ad products that will help shift Buzzlogic’s profile from a conversational marketing tracker to one that promises to help focus publishers and marketers broader ad strategy.
“I love the vertical channel site business, like About.com, where advertisers look to specific kinds of content to find their audience, but in a world where all content is social, you need to be horizontal,” Hills says. Buzzlogic provides contextual analysis around what sites are experiencing the most linking, comments and matches that meaning to an audience a brand marketer is searching for.
“We don’t just look for key phrases, but we analyze the meaning of what’s being talked about,” Hills adds. “Even though we value the horizontal approach, we’re not an ad network. From a publishers perspective, there’s no channel conflict because we’re not going around them. With the agency, I don’t want to determine who the demographic is for their advertiser — they know that already — I just want to help them understand the demos they’re going after. And while I don’t have anything against the behavior targeting business, we don’t drop cookies on to sites and we don’t scrape data from publishers. We don’t have to. Basically, what Buzzlogic does, is we provide understanding of the influential places of context and discussion and use beacons to provide a brand advertiser to get a message across.”
With $28 million raised in total, this latest round, from Bridgescale Partners, investor Bob Colman, Adams Capital Management and other previous backers, Hills is starting to consider acquisitions later this year. In addition using the funds to double its sales force — the company has already gone from 42 staffers at the beginning of the year to 54 now — the company also plans to further build out its mobile and video analytics offerings. Release