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Israeli Startup that Personalizes Facebook Ads to Reach $100 Million in Revenue

An Israeli company, Bidalgo, has developed a system of personalizing advertising on Facebook, and expects to reach as much $100 million in revenue this year, David Shamah of The Times of Israel reported today.

According to co-founder and CTO Niv Yemini, Bidalgo has developed algorithms to determine the most effective message to each a potential audience. The algorithms take into account what device is being used, as well as the demographics of the user, to tailor an effective advertising campaign. Yemini used the example of one of its best known clients, the game maker Zynga, to describe the factors Bidalgo algorithms considers.

Among the company’s customers are the biggest game app makers for Facebook, including Zynga and Plarium, said Yemini. “If Zynga is trying to market a new game, they will want to focus their ad campaign on Facebook users who are going to be interested in it, and the best way to do that is to find Facebook groups or pages that a lot of potential players follow.

“We look at the demographics of each page – where the users are located, their interests, if they have played games before, their age, common interests, other connections, and much more – all without specifically identifying them – and rate them in order of effectiveness. Then we examine the campaign they want to run – video, display ad, etc. – and see how much Facebook is going to charge them for it. By analyzing the user information, the page rankings, and pricing, we can ensure the best deal for Zynga.”

Bidalgo, which was founded in 2010 and is based in Ramat Gan, has a staff of 40 in Israel and is looking to open an American office in San Francisco in the coming weeks.

[Photo: Shane Global / Flickr ]