DataLogix has been one of those companies that has made quite a bit of money when it comes to taking advantage of other sites needing to know how their users spend money. The company has been working hard in order to be that much more effective over the last few months, including its moves to increase mobile partnerships. Recently, the firm has been working with social media sites like Facebook and Twitter (News - Alert).
DataLogix has become such a critical cog for the social network’s engines that it has raised more than $45 million in a Series C funding round. DataLogix says it has made, in the last couple of months, revenue growth of more than 50 percent since April of last year.
The latest funding round for the company brings the total amount of money it has raised this year to $86.5 million on the books. There was also an undisclosed amount of money brought in from Breyer Capital last month. Last April the firm brought in about $25 million.
DataLogix has managed to bring in this kind of money thanks to algorithms which social sites have found invaluable. The software works by seeing that you have used a retailer’s loyalty card, such as Safeway to get a discount on Pantene shampoo. The company then sends that data anonymously to Facebook (News - Alert) or Twitter by hashing it together in other user’s data. Facebook then turns around and tells someone like Vidal Sassoon that you recently purchased shampoo. It then offers you up a coupon for a couple of dollars off as a way to try and lure you away from Pantene.
Once you and a bunch of other Facebook users start buying more Vidal Sassoon, Facebook tells the company their advertising on the social site is the reason the purchases have gone up. The company then spends more money on advertising on Facebook and DataLogix has made itself a valuable asset for the social media site.