How IDI and Fluent Use Data Fusion to Optimize Ad BuyingJanuary 19, 2016 | By Fluent
Publication date 1/18/16
For starters, the acquisition was for $100 million, a significant valuation in this industry. Also the respective core strengths of the companies were intriguing on their own. What could a combo between the two deliver? As it happened, it didn’t take long to find out.
Beta Roll Out
Last month IDI began releasing the beta version of its data analytics platform idiCORE to select customers. It is built on cloud-based infrastructure and fueled by a massive data repository and proprietary linking technology.
It is both data and industry agnostic, but idiCORE’s initial applications will be aimed at risk management industry. It will then move into other segments of the market, including government, financial services, law enforcement, insurance — and marketing and online ad placement.
In fact, when all of the various pieces are in place, the company expects to have a solution that will make online and mobile ad buying a (finally) optimized process for ad buyers by cutting through the fraud, waste and inefficiency.
To truly understand idiCORE’s potential to tackle this very monumental challenge, a look back at these companies’ achievements up to the time of the acquisition is in order.
A 120M Consumer Database
New York City-based Fluent is rich where it counts — that is, in detailed data provided voluntarily by consumers on a wide range of demographic, ethnographic, behavioral and meta-data attributes, thanks to its survey operations.
The company also reported approximately $126 million in revenue and approximately $20 million in earnings before interest, taxes, depreciation and amortization (EBITDA) over the trailing 12 months through the third quarter of 2015. While that doesn’t make it rich, it does indicate that it’s financially secure.
Fluent surveys more than 500,000 Americans a day, generating more than 5.6 million survey responses. As such, it has been able to build a detailed database of more than 120 million US consumers since it was founded in 2010.
This is the company’s no-so-secret-sauce, Fluent CEO Ryan Schulke told CMSWire. “When you think about ‘data’ in general, it is transaction data that is collected during a consumer transaction such as a purchase. It is not always collected directly from the consumer.”
But if Fluent’s data is its secret sauce, its bread and butter is how it monetizes the data.
Companies across a number of different verticals buy the data from Fluent for various purposes. One example Schulke gave was Overstock.com, with whom Fluent worked with to assist with signups.
Fluent was able to flag the audience sets on Overstock that were indexing the highest, he explained. By audience sets, he means, for example, young married couples living in rental homes in an urban area or conversely singles living in a high-end condo. “We can then say, that ‘home owners are more likely to buy XYZ product than a renter, especially if they are between 30 and 40,” Schulke said.
Actually some of the secondary data set analysis is being made possible, or will be made possible this quarter, through IDI and its own store of data.