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Just when you were wondering what the next big thing in online advertising would be after demand-side platforms, one possible answer is firms that use search data to re-target users for an ad campaign. Magnetic is one company that specializes in re-targeting and has been able to rack up deals with DSPs such as Google’s Invite Media, MediaMath, XA.net and [x+1]. The New York company has also just raised a $5 million first round funding led by Charles River Ventures, Ron Conway and NYC Investment Fund. Previous backers including Founder Collective and IA Capital Partners also participated.
The company will use the proceeds to build out its platform. Two-year-old Magnetic, which was previously known for contextual ad serving as DomDex before changing its name, raised a $1.25 million seed round in March from NYC Seed and IA Capital Partner.
Magnetic is headed by founder Josh Shatkin-Margolis. He spent three years working at Yahoo (NSDQ: YHOO) as director of engineering responsible for data processing within the advertising division, working on the Panama ad system — which some may remember was highly touted by the team under then CEO Terry Semel, but was ultimately explained as one mere step to the creation of the company’s APT display ad management and targeting platform. Before Yahoo, Shatkin-Margolis put in five years at DoubleClick, where he served as principal architect for all banner ad serving technologies.
As a sign that retargeting was becoming more important to advertisers, in March, Google (NSDQ: GOOG) began beta testing a new conversion reporting tool for AdWords called