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DataPop, a startup that optimizes copy for online ads, has raised $1.7 million in a first round of funding.

DataPop can fine tune ads for marketers by combining business data like product SKUs, price, inventory and geo-specific deals with a consumers’ search intent. The technology allows marketers to quickly deploy custom ads that fit their audience. For example, if a consumer in Chicago searches for a 42 inch screen TV, DataPop may include a TV screen size in the ad, along with where that TV can be purchased and how many are in stock.

Based in Los Angeles, the startup works with retailers and travel advertisers. CEO and co-founder Jason Lehmbeck said that although the additional processing may make individual ads more expensive than traditional ads, marketers on average have seen a 30 percent increase in sales and a 15 percent decrease in cost per sale because of DataPop’s creative optimization.

The round was led by Rincon Venture Partners with participation from IA Ventures, Momentum Ventures, Accelerator Ventures and a group of angel investors.

Founded in 2008, the company is currently in private beta but is planning a full release for early 2011. DataPop plans to use this latest funding to build its engineering team and scale the platform.

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