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SegmentStream, a U.K.-based marketing analytics company is working to help enterprises thrive in a post-cookie era.
Third-party cookies have long enabled enterprises to track the online activity of their users to deliver personalized ads and then measure the success of those campaigns. The practice has been very effective, but internet giants have also been on a quest to end the software’s use over privacy concerns. Apple’s Safari and Mozilla’s Firefox already block cookies, while Google plans to discontinue them by 2023, which could upend the whole way of digital advertising.
“All existing marketing analytics and multitouch attribution tools – including Google Analytics, RockerBox, AttributionApp, Bizible, Datorama – analyze marketing performance using deterministic ways of stitching retrospective conversions with traffic sources, which doesn’t work in a new ‘post-cookie’ world due to intelligent tracking prevention, cross-browser/cross-device customer journeys, and other cookie-tracking limitations,” Constantine Yurevich, cofounder and CEO of SegmentStream, told Venturebeat.
As a result, he said, most website sessions (and therefore advertising clicks) do not receive any attributed value, which creates issues for marketers when evaluating the impact of their marketing channels and campaigns. Plus, the lack of information about the assigned value of each advertising click prevents smart bidding algorithms of popular ad platforms (such as Facebook Ads) from properly functioning.
SegmentStream’s AI-driven predictive attribution
To solve this challenge, Yurevich and his team launched SegmentStream – a solution that focuses on predictive attribution instead of reverse-engineering attribution from the time of conversion backward. It uses advanced machine learning algorithms to analyze first-party user behavior data and evaluate the incremental performance of each marketing channel and campaign, giving marketers probabilistic conversions demonstrating the contribution of each traffic source towards future sales.
“Our proprietary machine learnings algorithms enable us to find correlations between complex user behavior patterns with the final conversions,” Yurevich said, adding that switching marketing analytics from ‘retrospective conversions’ to ‘probabilistic conversions’ metrics gives marketers the ability to assign proper value to each website session without waiting for an actual conversion to happen and relying on cookies-based tracking.
This probabilistic data, showing which channels and campaigns are working and which are not, can then be fed into ad platforms to automate ad optimization and make the analytics actionable.
Since starting up, SegmentStream has roped in over a hundred customers in 14 countries, including KitchenAid, Nespresso, Kave Home, and Freshly Cosmetics.
“In terms of recurring revenue, the company has grown by more than three times during the past 12 months while at the same time being operationally profitable,” the CEO added, without disclosing the current annual recurring revenue.
Today, SegmentStream announced it raised $2.7 million in a funding round that was led by Fort Ross Ventures, OKS Group, and angel investor Liad Agmon.
With the seed round, which also saw the participation of Ragnar Sass, Martin Henk, and Martin Tajur, SegmentStream plans to strengthen its go-to-market efforts and raise increased awareness about its product. The company also plans to make the solution scalable and accessible to more clients.
“We aim to build a market standard solution for the “post-cookie” marketing era, which means that the product should be as easy to use as possible by many thousands of companies — ranging from SMBs to big enterprises,” Yurevich said.
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