Deals

Crowd Factory raises $6.5M to track social media marketing to the dollar

Social media marketing service Crowd Factory announced today that it has raised $6.5 million in its second round of fundraising led by Storm Ventures.

The Crowd Factory service is usually an HTML tag that’s dropped into the bottom of a web page that lets visitors share the content with their social networks, including Facebook and Twitter. Crowd Factory tracks where the link is shared and who ends up clicking on it. Users can also drop the tag into email messages and other landing pages.

“Every time somebody pushes that link or element out to their social network, we get 10 more people back,” said the company’s chief executive, Sanjay Dholakia. “We want to be able to track that all the way down to a conversion in terms of pure dollars.”

Social media marketing companies seem to be a dime a dozen these days — especially those that offer analytics. Crowd Factory hopes to differentiate itself with a number of applications that sync up with the information the service pulls in. For example, the company has a social offer app — which Dholakia called the “Groupon for enterprise” — that encourages site visitors to share the deal with a number of friends in order to receive a larger discount.

The company’s first round of funding, worth $5 million, was spent on building up the service and introducing a number of apps. The latest round of funding is geared towards marketing Crowd Factory to other major companies. Existing investors Hummer Winblad, Peninsula Ventures and some other angel investors also participated in the round. Crowd Factory has raised $11.5 million in funding to date.

The San Francisco, Calif.-based company was founded in 2009, and its clients include HBO, Microsoft and Sony.

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