Social networks have to prove return on investment to get advertisers to buy bigger campaigns, so they turn to Datalogix to tell them when ads drive brick-and-mortar sales. Datalogix has become a critical cog in Facebook and Twitter’s monetization engines, allowing it to raise a new $45 million Series C round led by Wellington Management Company. The company says revenue has grown 50% since April 2013 .
This round, joined by existing investor IVP, brings Datalogix to $86.5 million in funding plus an undisclosed round raised last month from Breyer Capital.
With steady income and plenty of runway to grow, Datalogix could be poised for an IPO. The Wall Street Journal recently reported the company was in talks with Goldman Sachs, Deutsche Bank, and Barclays about backing a $75 million IPO.
Datalogix plans to use the money to developer a wider suite of audience and measurement products. Datalogix can help companies both target the right customers for specific products, and measure if those ads actually influenced their buying patterns. Social networks like Facebook and Twitter can then use the data to convince advertisers their campaigns are working and should boost their spend.
Businesses are sick of spending money on analog advertising with little idea if it’s actually driving sales. As advertising moves to digital mediums that come with sophisticated tracking technologies, Datalogix is changing marketing from a guessing game into a science.
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