FOSTER CITY, CA--(Marketwire - Sep 21, 2011) - Adchemy Inc., a leading advertising technology company, today announced that it has broadened an existing technology partnership with Microsoft Advertising, and completed a $61 million Series E financing round with Microsoft Corp., August Capital and the Mayfield Fund. Per the agreement, Microsoft and Adchemy will team to expand the availability of the Adchemy IntentMap™ technology that will help Microsoft adCenter customers create more relevant ads based on consumer intent.
"Our expanded partnership with Microsoft validates our vision for making each and every ad more relevant to consumers," said Murthy Nukala, founder and chief executive officer of Adchemy. "Moving away from keywords and focusing on a consumer's underlying intent is a massive paradigm shift that radically simplifies ad campaigns and enables advertisers to address consumer queries in a significantly more relevant way, at a scale unprecedented in the industry. Our technology will help transform how advertisers reach consumers in search, mobile, and other intent-rich channels."
Over the past year, Adchemy has commercialized the Adchemy IntentMap technology for paid search, offering advertisers a complement to existing paid search services and tools. The Adchemy IntentMap solution helps advertisers expand keyword coverage and improve relevance of paid search campaigns using consumer intent instead of individual keywords. Using consumer intent to manage and optimize paid search campaigns significantly reduces complexity while helping to improve profitability and scalability.
As part of its broadened partnership, Adchemy intends to make its Adchemy IntentMap technology more widely available to Microsoft adCenter customers in order to help improve campaign effectiveness and ad relevance using intent. The investment round supports the partnership, enabling Adchemy to grow its workforce in support of more clients and rapid platform development.
"Microsoft Advertising is committed to enriching the online ad experience for consumers and helping deliver more effective campaigns and higher ROI for advertisers and agencies. The key to this is to have a deeper understanding of consumer intent so that the ads users see are engaging and relevant," said Rik van der Kooi, corporate vice president of the Microsoft Advertising Business Group. "Expanding our relationship with Adchemy brings us closer to this vision by accelerating our ability to deliver Adchemy IntentMap technology to top Microsoft adCenter customers, which will help enable higher performing campaigns."
Prior to completing the Series E investment round -- in which Microsoft will take a minority stake in Adchemy -- the two companies completed the initial phase of a program focused on growing and improving the profitability of paid search campaigns for a select group of online retailers, including Macy's and O.co, also known as Overstock.com.
"Intent-based advertising increases the scope and scale of even the largest paid search programs," said Chris Lien, co-founder and chief executive officer at Marin Software. "Marin provides a foundational, easy-to-use platform for managing that scale. As Adchemy and Microsoft expand their partnership, we are excited by the opportunity to help our mutual customers realize increased revenue and efficiencies."
Founded in 1975, Microsoft (NASDAQ: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
ABOUT MICROSOFT ADVERTISING
Microsoft Advertising provides advertisers and publishers with media, tools and services to help drive deep and profitable engagement with their audiences. This includes a media network that reaches hundreds of millions of consumers around the world; global technology platforms and tools that enable easy planning and management of campaigns and content; and services that help untangle the complexities of digital media to get more value from marketing and content investments. Microsoft Advertising makes buying and selling media simple, smart and cost-effective across media and devices in the Microsoft network of properties and beyond. More information is available at http://advertising.microsoft.com.
Adchemy offers advertisers the ability to leverage consumer intent to create more effective digital advertising experiences. Adchemy IntentMap™ technology allows advertisers to radically simplify their paid search campaigns, significantly improve ad relevance and effectively grow their business. Listed by The Wall Street Journal as one of the top 50 venture-backed companies in the U.S. in 2010, Adchemy is a rapidly growing Silicon Valley company, backed by Accenture, August Capital, Mayfield Fund, and Microsoft. For more information, please visit www.adchemy.com.
ABOUT AUGUST CAPITAL
August Capital was founded in 1995 to invest in companies differentiated by technical innovation and entrepreneurial excellence. To date, the August Capital funds total $2.0 billion. August Capital's partners have more than a century of combined venture experience and together have invested in more than 80 companies across the technology spectrum. These companies represent an aggregate market capitalization of well over $250 billion and generate in excess of $75 billion in annual revenue. The partners at August Capital were the earliest investors in a number of ground breaking technology companies including Microsoft, Intuit, Seagate, Silicon Image, Sun Microsystems, Skype, Compaq, Symantec, Sybase, Atheros, Postini, Cobalt, shopping.com, PayCycle, Grand Junction and many more. August Capital is located in Menlo Park, California. For more information, please visit www.augustcap.com.
ABOUT THE MAYFIELD FUND
Mayfield Fund invests in relationships with entrepreneurs, institutions, and the community to transform bold ideas into industry-leading companies. With over $2.7 billion under management, Mayfield invests primarily in early stage U.S. companies in the enterprise, consumer, energytech, semiconductors and Telecom sectors. The firm fosters global entrepreneurship by investing in India-based companies through its Mayfield India fund and in China-based companies with its partner GSR Ventures. Over its 42 year history, the firm has invested in more than 500 companies resulting in over 100 IPOs and more than 100 mergers or acquisitions.
For more information about Mayfield Fund, visit our Web site (www.mayfield.com) or follow us on Facebook (http://www.facebook.com/mayfieldfund) or Twitter (@mayfield).