Datalogix

Datalogix is a consumer data collection company based in Denver, Colorado.[1] Datalogix provides online, direct mail, and mobile services to their clients.[2] The company's primary objective is to obtain and track offline and online data purchasing behavioral patterns, with the use of information obtained from retailers' loyalty card programs. This information is used to help advertisers maximize ad campaigns that will potentially increase profits.[3] However, Datalogix clients extend further than retail stores, as some of their clients include grocers, travel agencies, Pepsico, Ford, and the Dr. Pepper Snapple Group.[4] After consumer spending behaviors are measured, the information is sold to advertising companies and publishers, such as Facebook and Google.[5] Advertisers then use the information obtained to tailor online ads based on what a consumer purchases offline, with the belief that a consumer is likely to purchase more of a particular offline item, if they see more advertisements for that product online.[6] The advertisers also use this information to reach new or existing customers. In turn, publishers use the data from companies, such as Datalogix, to determine the amount of profit advertisers earned and to convince them to purchase more ads that will feature on their websites.[7] Advertisers and publishers frequently use Datalogix to help increase profits, as the use of digital media continues to expand.

However, some consumers and agencies are against companies that use Datalogix because it brings into question the issue of consent, as a vast majority of consumers do not want their information collected, measured, or sold.[8] The FTC was involved to investigate a deal between Datalogix and Facebook, to see if it violated privacy issues.[9] Datalogix obtains data from Facebook users by matching e-mail addresses from a Customer Relationship Management database (CRM),along with additional information people use to create personal Facebook accounts, in order to tailor specific audiences for advertisers.[10] Datalogix tailors specific audiences by grouping consumers together, who have similar interest, behavior patterns, or demographics.[11] The company reports that it keeps the information anonymous and gives consumers the option to opt out of data collecting and reporting by selecting the opt-out option on their website.[12]

On December 22, 2014 Oracle announced that it signed an agreement to acquire Datalogix pending regulatory approval and other customary closing conditions. Datalogix will become part of the Oracle Data Cloud.[13]

Funding

In May 2014, Datalogix raised $45 million Series C round led by Wellington Management Company. This round, joined by existing investor IVP, brought Datalogix to $86.5 million in funding plus an undisclosed round raised from Breyer Capital. In April 2013, the company raised $25 million.[14]

References

  1. ↑ Constine, Josh. "Datalogix Raises $ 25M to Pump Juicy Offline Purchase Data into Google and Facebook". Retrieved 28 January 2014.
  2. ↑ "Not All Audiences Are Created Equal". Retrieved 27 January 2014.
  3. ↑ Mills, Elinor. "Privacy Experts to Ask FTC to Probe Facebook-Datalogix Deal". Retrieved 28 January 2014.
  4. ↑ Edwards, Jim. "The CEO of Datalogix Just Gave Us a Glimpse Into Facebook's "Big Data" Strategy". Retrieved 28 January 2014.
  5. ↑ Constine, Josh. "Datalogix Raiser $25M to Pump Juicy Offline Purchase Data into Google and Facebook". Retrieved 28 January 2014.
  6. ↑ Constine, Josh. "Datalogix Raises $25M to Pump Juicy Offline Purchase Data into Google and Facebook". Retrieved 28 January 2014.
  7. ↑ Constine, Josh. "Datalogix Raises $25M to Pump Juicy Offline Purchase Data into Google and Facebook". Retrieved 28 January 2014.
  8. ↑ Mills, Elinor. "Privacy Experts to Ask FTC to Probe Facebook-Datalogix Deal". Retrieved 28 January 2014.
  9. ↑ Mills, Elinor. "Privacy Experts to Ask FTC to Probe Facebook-Datalogix Deal". Retrieved 28 January 2014.
  10. ↑ Mills, Elinor. "Privacy Experts to Ask FTC to Probe Facebook-Datalogix Deal". Retrieved 28 January 2014.
  11. ↑ "How Data is Used". Retrieved 27 January 2014.
  12. ↑ "Privacy Policy". Datalogix. Retrieved 27 January 2014.
  13. ↑ "Oracle and Datalogix". Oracle. December 22, 2014.
  14. ↑ http://techcrunch.com/2014/05/28/offline-purchase-data/
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