July 21, 2010
Compass Labs – your precision targeting solution
Social Media is on the way up, thatâ€™s for sure and the advertising potential attracted many investors. One of them is Dilip Venkatachari who founded Compass Lab in 2009.
Dilip Venkatachari worked for both internet giants, Yahoo, as VP Insight Data Strategy and Google at DotMobi, the mobile ad division acquiring deep knowledge in the field. He also founded other two startup companies, CommerceSoft and CashEdge. Arjun Jayaram is also a co-founder of Compass Labs. He worked for Sybase, Bea and People Soft.
New Enterprice Associates, Triple Point Capital and others recently funded the company with $5 million (Series B funding) after a first round of funding in 2009 of $1 million. The money will be invested in further development of the business and to support the sales channels.
The potential of this market is enormous, as Social Media websites have seen exponential growth in the last few years and the forecasts shows that they will develop faster than any other online media in the next years. The advertising should be where the customers are. As the customers spend more and more time on websites like Twitter or Facebook, it is important for advertiser to allocate a good part of their budget to promote their product and services there. There are predictions that budgets spent in 2014 in Social media will be over $3 billion.
Still, these Social Media environments are not quite exactly the same as other marketing channels. The decision process slightly changed from â€œbuying what you see more oftenâ€ to â€œbuying what your friend recommends youâ€ and this process will continue with the development of social networks. This is why the services provided by Compass Labs – real time precision targeting on social media platforms – are a great help for any marketer. The solution offered by Compass Labs is designed to identify the consumers who are in the decisional process in buying products or services, the high time for sending a targeted message or a special offer with a direct result in a better conversion of ads into closed sales.
Given the potential of this market, Compass Lab has a great future ahead even the competition is not missing the game. There are several companies offering targeted marketing but most of them are specialized on certain platforms like Twithawk for Twitter. Still, the next years will bring to the table more companied in this field, for sure as the entry barriers are not so hard to be demolished.
Compass Labs is relying on a reduced number of employees but they are top-notched professionals in their field. They are looking to expand their team with other professionals. Andre Leb, a veteran from PriceGrabber.com with over 10 years experience in social media, recently joined the company as VP of Business Development.
Compass Labs is one of those start ups that should be watched closely. They will probably develop extensively in the near future as they activate in a market with a huge potential.