Launched in 2008, Rocket Fuel uses artificial intelligence to improve advertising for companies. They are the fastest growing advertising technology company in Silicon Valley and were recently named # 4 company in Forbes’ Most Promising Companies in America. With Rocket Fuel customers from around the world can optimize digital campaigns such as online bannering, videos, mobile campaigns or social campaigns, without the need to sit behind the computer all day.
Rocket Fuel buys media on behalf of marketers and agencies and uses their own, patented, algorithms to improve the buy’s efficiency. In total, Rocket Fuel processes over 1.5 billion of ad displays on a daily basis. All ads are constantly tweaked across a large set of variables (such as behaviour, context, geography, demographics, and more) to improve their targeting. Rocket Fuel’s technology reaches the most desirable audience, those who are interested in the ad and are most likely to click on it and lead to a conversion, through several analyses. As George John describes in a blog post written for Venturebeat: “The rocket science involved in doing this well is a combination of a number of components such as predictive modelling, adaptive control, and portfolio optimization.” These technologies, including artificial intelligence, are used to determine the best placement for a display ad. It either buys impressions on an ad exchange, or directly from online publishers.
Online ads are perishable products. They only appear the moment a user appears on a website and the opportunity is lost after a second when an ad needs to be loaded. In such a fast environment it is important to have a tool that can operate in real-time and analyse within a fraction of a second the right ad for the right spot at the right place for the right customer. A rather difficult task, but it looks like that Rocket Fuel has cracked this nut.
Apart from ad optimization, Rocket Fuel also offers tools to know how customers feel about a product and what they think of your message. This information can help in optimizing the message to increase conversion rate. Rocket Fuel does not only offer placing ads at the right spot, but also videos are placed adjacent to the right content. With mobile becoming an increasing important aspect of our daily lives, Rocket Fuel also offers optimizations of mobile advertising campaigns.
In 2012 over 700 customers used the services of Rocket Fuel and the company operates from 18 countries. In 2012 they secured another funding of $ 50 million, bringing the total amount of received funding up to $ 76,6 million. More than enough to continue to grow and expand their company. As the online and mobile advertising industry spend was over $ 80 billion in 2011 and is expected to grow to $ 130 billion in 2015, they are in the right industry to have a large impact. We therefore give them an 8 bits rating.
Update September 19: Rocket Fuel went public with 4 million ordinary shares prices at $ 29.