The Company InCauda was founded in 2007, and it is supported by Maayan Ventures since the end of 2008. InCauda provides automatic targeting solution of Internet advertisements, hence improving the ads efficacy. Enabling a better monetization of Internet sites (publishers) property.
The Problem
Internet advertising revenues are constantly growing, in the US alone they are expected to climb from $21.4 Billion in 2007 to $50.3 Billion in 2011 [2007 Online Advertising Forecast, Yankee]. However, some publishers (Internet sites), which are successful in terms of visitors and views, are failing to capitalize their popularity as their advertising space (property) cannot be properly utilized by advertisers. The interactive advertising market offers three ways to monetize sites:
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Brand advertising: whereby the publisher is paid for 1000's of impressions (CPM). Alas long tail publishers are too small to attract bard advertisers.
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Affiliated marketing: the publisher applies to specific ads from given campaigns reservoir. This service is provided by affiliated marketing networks (e.g. commission junction, tradedoubler, etc.). The publisher is paid upon success only. This model is called Cost per Action (CPA). In order to enjoy this model a publisher needs to register to several networks, choose relevant campaigns, measure the success, and constantly optimize the conversion rates by changing the serving rates and locations, add new campaigns and remove the ones are no longer converting. In most cases a small publisher cannot manage this huge overhead.
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Contextual advertising: The most accessible ads monetization is offered by contextual advertising, such as Google AdSense and others. It is very easy to apply to Google AdSense, but it is more difficult to gain revenues from it. The publishers who are successful at it are constantly tweaking their content, planting lucrative keywords and attracting better campaigns. This type of advertising is usually limited to text ads only and in most cases is insufficient as a single source of revenues.
Products
InCauda combines the power of behavioral targeting with the automation level of Contextual targeting. Using a pure analytical approach that requires no prior knowledge of the content or the audience, it turns a publisher's hoard of undifferentiated impressions, into well defined target groups. Avoiding the main drawbacks of incumbent targeting techniques, mainly manual intervention and privacy concerns, InCauda empowers the small and medium web publishers increasing their revenues significantly. This technology employed on an ad inventory aggregated from the best affiliated networks, produces superior revenues for the publisher.
The Market
Internet ad revenues in the US are expected to climb to $50 Billion in 2011. The performance based advertising will grow by 275% during this period. The need for accurate targeting is becoming essential as the performance based advertising market evolves.
The Team
Sharon Jefet - has 12 years of experience in the software development industry. Previously, for 9 years he acted as a Director of R&D with Mercury Interactive. Sharon holds a M.Sc in applied mathematics from the Weizmann Institute.
Avi Cahlon - has 10 years of experience in the communications industry. He acted in various product management, product marketing and business development positions, managing highly algorithmic optimization products. Avi holds a B.Sc. in Physics from Hebrew University in Jerusalem.
Company Status
InCauda's targeting engine and ad server beta versions are already deployed in few sites. The beta is demonstrating a potential growth in revenues for publishers.
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