Retargeting specifically refers to tools that display ads based on previous online activity from search history to website visits. Targeting has become big business with companies like Google, Twitter and Facebook launching their own dedicated retargeting platform. Retargeting covers a variety of different functions such as:
- Search Retargeting – Companies that utilize consumer’s previous online search habits to deliver targeted ads.
- Site/App Retargeting – Companies that deliver targeted ads based on past website and app visits.
- Social Retargeting – Companies that mine social data including social networks and blogs to deliver targeted ads.
Year-on-year funding into retargeting companies (businesses that target ads based on past web behavior) has risen by 62% with year-on-year deal growth growing by 32%. In the last year, venture capitalists have invested nearly $217M in retargeting over 25 deals as depicted in the chart below.
According to CB Insights, close to 30% of deal activity in the space went to mid-stage financings at the Series B stage while seed/angel rounds only captured close to 14%. California saw the highest amount of deal activity in teh space with more than 38% followed by New York at 19%.