Reduce Data was conceptualized and launchrf in October 2012. "The idea came about in my last ad network, where I found advertisers unable to effectively measure and optimize ad campaigns across various networks," said Asif Ali, Founder of Reduce Data.
According to him the scale and size of data that were being generated in advertising was huge and there were very few platforms addressing this scale to drive efficiencies. It is also estimated that nearly 30 percent of media spends were wasted. Reduce Data was started as an attempt to solve this problem.
While they initially focussed on being a measurement platform, Reduce Data eventually pivoted to provide a media buying platform while focussing on the same problem.
What does Reduce Data do?
Reduce Data is a programmatic advertising platform (also called Demand Side Platforms) which buys advertising inventory using Real-time Bidding (RTB).
To determine the best price/ad spot to buy, Reduce Data leverages:
- Machine learning algorithms
- Real-time decisioning
- Real-time data processing capabilities
Some of Reduce Data's competitors are DataXU, RocketFuel, Simpli.fi and Tradedesk. According to Asif, Reduce Data stands out through its real-time data processing capabilities and real-time machine learning solutions which delivers significantly better ROI. Though, this field is highly competitive some intricacies like these help provide the edge to many advertisers.
They typically target ad agencies and direct advertisers. Most businesses that need user acquisitions tend to do so through advertising. So this Programmatic advertising platform certainly helps the advertising industry and specifically the real-time data processing capabilities considering the dynamic nature of requirements within digital advertising.
Most large brands and companies often work with ad agencies while many consumer facing startups/companies tend to manage advertising by themselves. So an added advantage according to Asif is that their solution suits small and mid sized agencies who buy digital media extensively especially those who have been doing so with ad networks and are transitioning to RTB (Real Time Bidding).
When asked about their own marketing efforts, the founder said that they had 120 inbound sign ups when they first launched and announced their product in the United States. However, they could not take advantage of that traction due to several third party certification needs.
Right now they are acquiring advertisers through a mix of direct sales with sales team selling targeting the US agency market and some sustained marketing efforts within social media and content marketing through their blogs.
At present they have a number of U.S.-based ad agencies and several agencies/startups from India working with them. However, they are predominantly U.S.-focussed at this moment of time. I believe considering the mature market there, it helps to start with targeting that market. However, considering a growth and traction in emerging markets on use of digital channels, certainly that's a good market for this startup to target especially with great volume of advertising that has opened up in the last few years, even in India for that matter.
One of the things Asif mentioned was that most programmatic platforms do have data processing and algorithmic capabilities. However, according to him what sets them apart is real-time data processing capability using big data technologies for higher optimization.
"Our machine learning algorithms are also real-time unlike most other ad networks which process data with significant latencies. All of this leads to improved ROI." he said. They are also focussing more on video, rich media advertising. And hence Programmatic,and Rich Media Ads defines their positioning at this moment.
Currently they are funded to the tune of US$500,000 through private investors and some of his own money. They aspire to connect to various exchanges--Facebook, Microsoft, Yahoo in order to give their advertisers higher reach and deliver better value.
As of now they are a total of 15 members with the team split between U.S. and India. Asif, the sole founder, has over 15 years of experience as a technologist and an entrepreneur.
"We're probably one of the tougher companies to work with, given the nature of our industry but if folks are looking at solving some tough engineering problems or want to be a high growth industry - then this is the place to be," said Asif.
Well, this startup has had some changes in the past, they've pivoted recently in order to meet the needs of a dynamic, tough and pretty intriguing industry of digital advertising. Focus and meticulous approach is something that is quite needed in this industry. So far, this direction is the way forward for this startup especially in a mature market such as U.S, they certainly can focus on a long term goal in emerging markets specifically towards mobile as well.