RedTrack, an AI-driven analytics and automation platform for media buyers, has closed a €2.9 million Series A funding round. The round was led by LeadVentures with participation from InstaVC, IronWolfCapital, and angel investor Balazs Gandera.
RedTrack’s technology is being used to track 60,000 ad accounts which generate over $2 billion in revenue for over 800 businesses, including ecommerce shops and marketing agencies. The new funds will be used to strengthen the product team, accelerate AI product development, and capitalise on existing inroads into the U.S. market. These improvements will ensure that RedTrack remains an indispensable tool for media buyers globally, particularly in the ecommerce and direct-to-consumer industries.
According to the IAB / PwC Internet Advertising Revenue Report, internet advertising revenues hit their highest-ever recorded level of $225 billion in 2023, with $64.9 billion coming from social media advertising alone. Nevertheless, the market for digital ad tracking and optimization is becoming fragmented, and sophisticated solutions are prohibitively expensive to everyone but large brands and agencies.
SMEs must resort to manual logging and disaggregated tracking services provided by platforms like Google and Facebook. Since it isn’t the interest of these major platforms for businesses to diversify their ad spending across multiple channels, their tools don’t encourage it. With inconsistent data sources and the decline of third-party cookies in recent years, digital marketers struggle more than ever to get an accurate analysis of their ad spending.
RedTrack gives this under-served market of SMEs an affordable solution that’s just as sophisticated as those being used by major corporations and agencies. Instead of jumping between analytics trackers and disconnected ad platforms, then trying to track and log all those analytics manually, SME media buyers can track performance, gain deep insights, and automate decisions on RedTrack. Every aspect of RedTrack’s combined analytics and automation platform is designed to let businesses see and measure their ads, from initial awareness-building to performance. Businesses use it to better understand which channels are driving acquisition and retention, going beyond standard campaign performance metrics. Seamless integration with social-media and shopping platforms like Facebook, TikTok, Google, WooCommerce, and Shopify are built in.
Vladyslav Zhovtenko, CEO of RedTrack, said: “We initially distinguished ourselves by bringing analytics and automation together, and then by offering this package to customers at a super transparent and predictable price. Now that we’ve done that, we’re focusing on improving the platform and building a multi-touch attribution model. When you’re selling a complex product, one touchpoint isn’t enough. RedTrack lets businesses see the entire funnel and understand every interaction. This funding round will boost our efforts to provide this holistic view for digital marketers in companies across industries.”
With RedTrack’s AI-powered features providing accurate data about digital ad campaigns and managing changes to optimize performance, media buyers are free to devote their energy to broader-thinking strategy and creativity. Powerful AI-based tools provide data-backed insights to help users avoid common pitfalls and make smarter budget decisions. The end result is more engaging campaigns with better conversion numbers.
Balázs Haszonics, CEO at LeadVentures, commented: “RedTrack understood the fundamental disadvantage many e-commerce and DTC businesses face when it comes to digital marketing. Not only did they build an affordable and transparent solution for these SMEs, they created a platform so efficient and intelligent that it’s useful to digital marketing teams in companies of all sizes. They’ve already proven their marketability and their forward-thinking tendencies when it comes to features, and we’re happy to help them continue this growth.”
Much of this growth is driven by marketing agencies and ecommerce businesses based in the United States, where RedTrack has already built a legally compliant business structure. U.S.-based companies and agencies now account for some 45% of the platform’s user base. By directing the funds towards improved penetration of the U.S. market, RedTrack can better meet the needs of an increasingly substantial proportion of its customers.
RedTrack recently developed proprietary high-load data collection and processing technology to enable businesses to collect and own their performance data. This feature will be further enhanced by the funds provided in this Series A round. In merging sophisticated automation with powerful analytics technology and cost efficiency, RedTrack is rethinking how smart digital marketing can and should be.
Read the orginal article: https://www.eu-startups.com/2024/10/vilnius-based-redtrack-raises-e2-9-million-to-equip-media-buyers-with-ai-powered-analytics-and-automation/
