Capturing Intent In Non-Search Performance Marketing: Zephrin Lasker, CEO Of Pontiflex (Part 5)

Sramana: What is the real value of opt in advertising?

Zephrin Lasker: If you look at the big list vendors like InfoUSA, you will see a huge industry in which consumers they target have never opted in for anything. They get your data from a post office or a warranty card. Companies sell data to them and to each other. Privacy concerns are changing. With our service, consumers opt in. They indicate that they want to hear from Progressive about car insurance. That is all it is really about. Google is a beautiful intent engine that captures people who are about ready to buy.

Sramana: Essentially, you are trying to capture intent in display ads.

Zephrin Lasker: Yes, we are capturing intent inside ads.

Sramana: In terms of competition, is there anyone else doing what you are doing?

Zephrin Lasker: Not really. We have created some startups that are trying to catch us. There are some small companies that people are trying to start. We do not have a large, venture-funded direct competitor. The closest comparable company is QuinStreet, which had its IPO last year. That company works only with the education and mortgage industries. We never bump into them in the market.

Sramana: You entered the market in 2004. How long did it take you to get a product out so that you could start working with customers?

Zephrin Lasker: There was an incremental build-up. The first large releases were in 2006 and 2007.

Sramana: What has been the revenue ramp between 2006 and now?

Zephrin Lasker: We went from $20,000 a month to close to $2 million a month today. In 2008, we released the full product. We spent 2007 raising institutional venture capital, which was a decision we thought about for a long time. We realized that to get the customers we wanted to go after, we were going to need some sort of sales team and a marketing team.

At that point, we decided to raise capital. We raised $2.5 million at the beginning of 2008. We came to investors as a ‘just add water’ deal. We knew the offices we were going to rent and who we were going to hire. A week later we had a full team up and running. The product was polished and ready because it had evolved. I also had legacy deals from my previous work that I was able to seed.

The market has really been the best teacher. The mobile piece is a classic example. It is easy to think you have a complete vision for what is going to work, but the market is the real truth teller. In some ways, the mobile market was not mature enough until the middle of last year for us to work. Some of it is timing. I love startups because I can fundamentally shift resources and strategies in a two-hour meeting. That is what we decided to do with mobile last year, and that is when business is really fun.

This segment is part 5 in the series : Capturing Intent In Non-Search Performance Marketing: Zephrin Lasker, CEO Of Pontiflex
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