Feldman said down the road Quantcast would serve a valuable role in matching up advertisers with sites that fit their target audiences.
KONRAD FELDMAN FOR FREE
The company does not currently charge for its services, offering audience stats for free to visitors of its site. “The use of data will migrate up the funnel and support all forms of advertising.” “The most effective online advertising uses lots of data and it’s Google,” he said. According to the company, over 20,000 publishers have done so, including Fox, CBS, AccuWeather and IDG.Ī data-intensive approach to get to accurate measurement of audience segments is critical for online advertising, currently dominated by direct-response search listings, to lure brand advertisers, Feldman believes. With Quantcast, publishers tag their sites for direct measurement. Publishers frequently grumble that comScore and Nielsen do not provide accurate counts of their audiences because they track the Internet use of a panel, then extrapolate the results to approximate overall Web usage. In doing so, Quantcast is taking on big competitors and industry standards, comScore and Nielsen. “Panel-based research doesn’t work well in a fragmented media.”
“The opportunity is to make it easier for marketers to spend money online,” said Konrad Feldman, CEO of Quantcast.
KONRAD FELDMAN SERIES
Polaris Venture Partners and Founder Fund led the Series B round, which the San Francisco-based company said it would use to build out its service to improve the accuracy of Internet audience measurement from the panel-based systems currently used. Indeed, he's aware that once Quantcast is public he'll have to spend more time defending his business to Wall Street analysts whose grasp of adtech is often tenuous, and less time persuading clients of the counter-intuitive business model that Feldman is built: That in the long-run it's often cheaper to pay more for your advertising if the customers you get from it spend more with your business.NEW YORK Digital audience measurement firm Quantcast is building its war chest to take on category leaders with a $20 million round of venture financing. "It's something that's in our plans but we don't feel a need to rush into it either." "It's a very natural step in the progression of building a large and enduring business," Feldman says.
The main advantage of an IPO for adtech companies is the sudden influx of new cash that can be reinvested in the business and allow it to grow faster than if it relied on its existing revenues. The online ad business appears to be entering a new stage: There are those companies who are prepared to take public cash from floating stock on the open market and there is everybody else. Quantcast reportedly had a $100 million revenue run-rate in 2013, but it's not clear whether that figure represents net revenue (the money the business keeps) or gross revenue (which includes pass-through billings).Īdtech CEOs have become much more open about admitting their IPO plans of late. (EBITDA is a measure of profitability.) Feldman declined to tell us how big is company is in terms of revenues, but he did say, "We're on a similar scale to many companies that have gone public in the last two years." One of those companies, Rubicon Project, reported $84 million in revenues in 2013. Quantcast has been EBITDA positive in last two years. The company is best known for its traffic measurement business even though it provides a buying platform for advertisers and a selling platform for publishers.Ĭurrently it has 425 employees and has taken a total of $65 million in investment funding. Feldman invited BI into his San Francisco HQ last week to talk about the size of his business and where it is going next.
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