Deals

BuzzLogic buys BlogRovR parent to improve its advertising algorithms

In the world of online advertising, relevancy is king. Using metrics to determine the online influence of various sites, as BuzzLogic does, has worked well for the company. However, actually being able to follow a user as they traverse the web may provide even more useful data to determine what they are looking for — and looking at. With that in mind, BuzzLogic is acquiring Activeweave, the company behind the popular Firefox add-on BlogRovR.

BuzzLogic currently works by looking at items such as trackbacks and links to determine how influential a blog is in a specific category. Links from other influential blogs are weighted more than links from smaller blogs. The company has a very intuitive visual system to help sort this data. In November of last year it rolled out a way to buy advertisements based on its influential ranking system. This allowed advertisers to get more their buck as their highly relevant ads ensured good click-through rates.

Activeweave was born two and a half years ago with the goal of making the social web more meaningful to users. Since then, the company has made a few products, none more popular than the Firefox add-on, BlogRovR, which has gained over 180,000 registered users. BlogRovR works by following your reading patterns and pulling up relevant content to what you are currently looking at from blogs you like. Think of it kind of like a more immersive StumbleUpon. The two companies had been in talks for a while about working together as they are both all about relevancy.

BuzzLogic intends to fully support BlogRovR just as it is now while utilizing the data it provides to improve its own algorithms. This new data will help BuzzLogic further analyze the conversation, the connection between posts, BuzzLogic chief executive Rob Crumpler told us. The hope is that this will lead to even better performance of the advertising network. The company is also open to looking at other technologies such as Twitter in developing its algorithms further.

BuzzLogic faces competition on the data side from companies such as Collective Intellect, which does analytical reporting on social media. It raised $6.6 million last week to expand operations. Radian6 is another company that analyzes connections in the web 2.0 space.

With the acquisition, Activeweave’s chief technology officer Jean Sini will move over to the same role at BuzzLogic while Activeweave chief executive Marc Meyer will becomes BuzzLogic’s senior vice president of products. Financial terms of the deal were not disclosed.

BuzzLogic raised $2.5 million back in November of last year. Prior to that it had raised $11 million in various rounds. Investors included Adams Capital Management, Transcosmos and Ackerley Partners. Activeweave took angel funding back in 2006.