SteelHouse Takes in $8.25 Million to Expand Best-in-Class Behavioral Analytics and Real Time Ad Targeting Platform
Under the radar behavioral commerce company SteelHouse has raised $8.25 million in new funding from Qualcomm Ventures and Daher Capital. The new investors join Greycroft Partners, Baroda Ventures, Rincon Venture Partners, and SV Angel in backing the best-in-class analytics and ad-targeting company.
SteelHouse operates like a matchmaking service between online consumers and advertising. This is unsurprising given that the company was founded by former eHarmony VP of technology Mark Douglas.
The company provides retargeting and one-of-a-kind “real time offers” to ecommerce retailers. In plain English, this means that SteelHouse can identify and evaluate unlike anyone else, either online retailer or analytics platform, the specific real time behavior of every shopper on a network of hundreds of thousands of sites. Based on analysis of this behavior, ecommerce retailers can instantaneously deploy the ideal ad or offer in each case to increase sales, average order values, and conversions.
The three year old behavioral commerce platform interacts with the 65 million monthly unique visitors of its hundreds of ecommerce retailer and agency clients, including Cooking.com, eCampus.com, SkyMall, Mrs. Fields, and Comedy Central. "I’m amazed at the execution and innovation SteelHouse has achieved in such a short period of time,” says Qualcomm Ventures’ Albert Wang.
All SteelHouse analytics and offer tools are available in a straightforward but exceptionally powerful dashboard. Typical installation takes a matter of minutes, after which retailers can immediately launch ad campaigns and live offers based on behavioral data.
SteelHouse Retargeting allows retailers to segment shoppers based on behavior. The granularity that is possible through this system is astounding. For example, an electronics retailer could instantaneously target ads or offers to only those shoppers viewing a $700 plus Samsung or LG television within 48 hours of the Super Bowl. They could take this one step further and reach out to those who have added the product to their cart but left the site without checking out.
To date, Steelhouse has raised a total of $15.8 million including $6.3 million in a round close in December 2011. The company plans to use the proceeds of its latest offering to double its staff of 65 by the end of this year, with a particular focus on sales and marketing, as well as the predictable engineers and product developers.
The company’s etailer clients pay for the services primarily through a CMP (cost per thousand ad impressions) model or in rarer cases through revenue sharing. While Douglas declined to discuss specific financial details, he is on the record forecasting more than $10 million in revenue in 2011. Further, he says that his company could be profitable today if it wasn’t investing so heavily in growing its team and expanding its user base.