ProGrids
Location: 1901. S. Bascom Ave. #500, Campbell, California, United States United States
Founded in: 2013
Stage: Post-launch
Number of employees: 6-15
Funding history:
- Date: 10/2013, Accelerator/Incubator: $500 k
Short URL: vator.co/progrids

ProGrids

Related Product Ads for Content Websites
Startup/business
Campbell, California, United States United States
https://progrids.com

ProGrids' technology matches related products to content in the form of a native advertising unit. We have built a proprietary product matching technology that reads complex content and incorporates disparate signals in order to serve up the right products at the right time and to the right person.

  • About
  • >
  • Activities
  • >
  • News
Company description

The ProGrids Platform matches related products to content in the form of a native advertising unit.  We do this by reading each page of a publisher's site and using contextual matching, retargeting, and big data analytics to determine which products to show, to which person, and on which websites.  We are the first platform where Advertisers can market their products in a native advertising unit that is predictable, easily optimized, and in real-time.

 

The Problem:

Advertisers can not programmatically market their products on content websites.  There is no platform that allows for real-time bidding, optimization, and scalability of product ads on websites.  This is a huge inefficiency that leaves millions of dollars a month in advertising budgets unspent.

 

The Solution:

Advertisers are able to bid, in real-time, for their products to show up in the ProGrids Product Widget.  They are then able to manage and optimize their campaigns by publisher, placement, and products through the ProGrids interface.

 

Clients:

Clients include Walmart, Nordstrom, Sephora, Urban Outfitters, and others , with JCrew, Estee Lauder, and eBay on the waiting list.


Technology:  How We Match Related Products:

Contextual Matching:  Machine Learning, Natural Language, and Keyword-to-Product Mapping.

Retargeting:  Merchant Pixel Implementation, User Behavior, and Audience Modeling.

Big Data:  Product Performance, Publisher Modeling, and Widget Optimization.

Patents/Intellectual Property: Working on patents in certain retargeting and display ad optimization techniques.

 

Highlights:

- 1,700 Publishers (33% Organic, 43% joined in last 2-months)

- Sales were up 70% MOM in July 2014, and are trending at 78% MOM for August.

- Product Ad Impressions in August:  20MM+ (All US)

 

The Market:

Online display advertising is a $20BN a year industry. In just a couple of years Product Listing Ads have come to dominate search marketing with the top 20 search advertisers on Google spending more than 60% of their budget on Product Ads instead of traditional ads. The ProGrids Platform of Product Listings on content websites is a merger of both technologies and media types, which we believe will yield a market of over $10BN.  The Product listings industry is growing at 618% YOY, and the Display Advertising industry CAGR is 13.4% YOY.

 

Team:

We are a team of online marketing veterans with over 10+ years of experience in Paid Search, Display, and Affiliate Marketing, and have Advisors that have launched successful Web Startups. The founders have unique domain expertise working at both major competitors Commission Junction and Linkshare, having been consultants for major advertisers like Walmart, and having worked for one of the top Black Friday websites on the internet, BlackFriday.fm.



Ps_17305_1146

Ps_17305_1147

Ps_17305_1194

Ps_17305_1195

Ps_17305_1197


Team
  • Paul Koura
    Paul Koura | Founder
    Director of Online Marketing at Dealsplus, Senior Affiliate Marketing Manager for Walmart, eBay, Linkshare, and Commission Junction.
  • Jacob Chapman
    Jacob Chapman | Founder
    Jake is an entrepreneur, amateur futurist, and an attorney. His articles have appeared in both WIRED and in peer reviewed journals. While VP of Strategy for Sazze he co-founded ProGrids where he is now building Google's most dangerous competitor.
  • Janghwan Lee
    Janghwan Lee | Founder
    Janghwan Lee is CTO of Progrids.com. He designed and developed Pocketly, Shoplately and Dealspl.us. He is interested modern web technologies such as Distributed Computing and Big Data.
  • Kiha Lee
    Kiha Lee | Advisor
    Kiha Lee is the founder and CEO of Sazze, which is the parent to several successful e-commerce companies, including the fashion marketplace ShopLately, and the social savings site, Dealspl.us.
Business model

ProGrids earns a percentage of the Cost-Per-Click revenue generated from a click that happens on one of our publisher partners websites.  We also earn a commission of the sale from Advertising partners that do not have CPC budgets.

Competitive advantage

Google Product Listing Ads:

Google PLA is the leader in product listings ads, however they are currently only focused on Product Listings on Google Search and not content websites.  ProGrids is the first company to bring a real-time bidding platform where advertisers can show Product Listing Ads on websites, using contextual matching, retargeting, and big data analytics.  Implementing a platform that determines related products on websites is a much different business, and the process to optimize product ad placements is fundamentally different than Product Listings on Google Search.

 

Taboola and Outbrain:

They are the leaders in Content Recommendations, however they are only focused on content discovery and do not show product listing ads.  The system and formula to determine related products on websites is very different than finding content ads that are related to the post you are reading.  While some characteristics are the same, such as behavior modeling and audience modeling, optimization and marketing goals are vastly different in each business.

 

Product Ads from Various Advertising Networks:

Most, if not all, Product Listings that you see on the internet are manual product widgets created one-time, for a very specific piece of content, by the website owner.  This is an extremely manual job, and most of all it limits the control of the advertiser to effect impression volume, clicks, and overall sales.  In the end the advertiser has no control over the exposure of their products, and therefore no opportunity to optimize placements, or products.

There are plenty or product widgets that exist in today's market, but none of them have an algorithm that automatically matches the related products to content, with no interaction by the website owner needed.  ProGrids is the first  platform that enables the advertisers to programmatically increase their Product Listing impressions, clicks, and sales without the inefficiency of contacting every website owner/blogger.