Startup Review: Ferrite Labs
Ferrite Labs tracks a targeted audience’s interactions with a given brand in both traditional and digital advertising environments, and any statistically correlated revenue. Ferrite Labs has one paid Beta customer currently using the platform.
The Company has a suite of products designed to help the customer analyze exactly which marketing tactics contribute to a successful consumer journey. Specifically, Ferrite labs tracks the successfulness of every individualized marketing campaign using a variety of analytic tools.
Ferrite Labs Program Analytics can be used to keep tabs on (i) how many prospects or customers are at each stage in the journey, (ii) the number and value of impressions and engagements at each stage, across online and offline touchpoints, and (iii) the average cost of each journey success.
Ferrite Labs also has Touchpoint Analytics. A touchpoint represents any time a customer’s prospects or consumers come in contact with their brand. That could be online or offline. It includes events, emails, broadcast, social and many more touchpoint types. The Company’s proprietary machine learning algorithm lets the customer compare these apples and oranges with confidence. Touchpoint analytics keeps tabs on:
· How many prospects or consumers are seeing this touchpoint, and the depth or value of their impressions
· How many prospects or consumers are engaging with this touchpoint, and the depth or value of their engagement
· The efficiency with which this touchpoint creates impressions and/or engagements (Cost/Value)
· The correlation (or lack thereof) of this touchpoint and program successes (e.g. sales, upsells, reviews, etc.)
· Whether a customer is hitting their intended audience or missing the mark with your content or media targeting
Ferrite Labs continuously monitors a customer’s marketing touchpoints for changes that indicate they need to take action. Then it notifies the customer in the moment so they can respond quickly. Customers get proactively notified when the system sees that a marketing touchpoint:
· Should be generating impressions and/or engagements and is not
· Changes efficiency, indicating creative is stale or there's an issue with delivery
· Appears to be missing it's target audience
· Is not correlated with program successes
· Performs especially poorly or well compared to other touchpoints within the program
The Company also has a product called Who Attended which uses cryptography to securely match a marketer’s database of customers and prospects with a specific event/exhibition/convention organizer’s database of attendees. This data is invaluable to data-driven marketers because it lets them personalize communications and better measure the impact of an event beyond the leads they capture. Who Attended also helps marketers connect the dots between sales and their past participation at a tradeshow.
Understanding who attended a show, but maybe didn’t provide contact information in the booth, enables data-driven marketing techniques such as content personalization and attribution modeling. Attribution modeling assigns a portion of the total revenue from each sale to one or more touches that a brand had with the buyer. This allows marketers to gauge the return on their investment for each touch, like a booth visit.
Prior to Who Attended, marketers would have had to ask event organizers for a list of all attendees to calculate their ROI — a request that would violate the privacy of attendees and cut into the show’s revenue stream. Who Attended bridges that gap by inviting show organizers to upload their list to the online platform. Marketers can then upload their sales or marketing database to Who Attended, and the platform will tell the marketer how many of their contacts match the show attendees for free. If the marketer wants to know who those matches are, they can pay a fee to the organizer and the software will return a list of the attendees, containing only the contact information the marketer uploaded in the first place. The software uses cryptography to make sure that no contact information can ever change hands between the event organizer and the marketer. All lists are immediately converted into a random string of letters and numbers, or hashes, in a process called cryptographic hashing, so no personal data is ever stored in Who Attended.
General product pricing can be found below:
o Base Package ($1200/month): Unlimited users, Unlimited child accounts, Unlimited email support, 200 Touchpoints
o 50 Touchpoint Pack ($100/mo): Additional 100 touchpoints; Distribute across any program or child accounts
o 90-Day QuickStart Program ($7500): One-on-one coaching; Premium support for 3 months; Up to 25 hours of consulting
· Premium Support ($200/mo): No-hold, no-wait phone support; Dedicated success manager
One of the notable features of Who Attended is that it generates multiple revenue streams – both from the marketers at the events and the event organizers. There is a price that is placed based on the number of matches between the marketer’s list and the event’s list (usually between $0.15 and $0.50). This fee is paid by the marketers who utilize this service. The Company receives 30% of the revenue stream and the event receives the rest. This is a no-brainer for event hosts as they do not need to put in a ton of work to make this happen.
Marketing analytics software is becoming the essential tool in each industry for the analysis of consumer behavior. It improves the effectiveness of each marketing program by measuring result and understanding what works best. It analyzes the marketing budget allocated for online marketing activity, by knowing the best Return on Investment (ROI). Using marketing analytics software allows marketers to be more efficient at their jobs and minimize the wastage of dollars.
The global marketing analytics market is gaining from the profound benefits of marketing analytics that help marketers to evaluate the outcome of their efforts. Besides lead generation and sales analytics, marketing analytics provide valuable insights into customer preferences and trends. In addition, marketing analytics solutions allow marketers to monitor online marketing campaigns and their respective success analytics, which helps them to allocate money for the most successful campaigns.
Marketing analytics solutions are increasingly becoming essential tools across a host of industries to analyze consumer behavior. It helps to improve the effectiveness of each marketing program by means of computing result and comprehending what works best. Marketing analytics include processes and technologies that allow marketers to evaluate the outcome of their efforts. It involves measuring, analyzing, managing, and controlling the marketing performance so as to maximize the effectiveness of a campaign and optimize return on investment (ROI). Based on the conclusion drawn from software for enhancing content sharing and customer involvement over social media, marketing manager plan and undertake marketing activities.
Some of the key growth drivers of the global marketing analytics market are rising popularity of social media channels, need to obtain exact ROI on online marketing efforts, and the need to undermine customer behavior. Companies across several industry sectors are investing heavily in marketing analytics that will help them maximize marketing return on investment (MROI) and reap competitive gains.
Moreover, the need to obtain conclusive traffic analysis on a particular online marketing channel is also acting in favor of the growth of marketing analytics market.
On the downside, high cost involved to deploy marketing analytics software and easily available open-source solution are hampering the market’s growth. Marketing analytics’ vendors also face challenges of creating awareness among customers about marketing analytics software and its features. Lack of competency among managers to use analytics software is also acting as a barrier to the growth of global marketing analytics market. This requires managers of enterprises to be aware of marketing analytics software and their benefits.
As per estimates of a report by Transparency Market Research (TMR), the global marketing analytics market will be evaluated at $2.1 billion in 2017. The market is anticipated to display robust growth at a CAGR of 14.3% for the 2017-2022 forecast period to touch a valuation of $4.1 billion by the end of 2022.
Among the various segments based on component, software platform is likely to lead to represent 49.1% of the market in 2017. Expanding at an impressive 15.2% CAGR between 2017 and 2022, the segment is likely to serve a demand to attract a revenue of $2.1 billion by the end of 2022.
Application-wise, the segments of the marketing analytics market are social media, content optimization, campaign management, email marketing, and others. The key deployment segments of the market include SaaS and on-premise. The segments of the market based on industry are retail and consumer goods, healthcare, BFSI, travel and hospitality, automotive, telecommunication, and others.
The growth of Ferrite Labs, like any company, is heavily dependent upon how quickly it can grow from it’s chief product, Who Attended, which is also reliant on the market for exhibitions and conventions. A rough estimate of the number of conferences / events that could be targeted by this product is ~500,000 per year run by ~50,000 event organizers. The global industry is worth about $150 billion and the US market it worth about $15 billion, depending on the resources used to find this information.
Based on some quick math, it could be assumed that the company would be able to make $18 million on the revenue sharing stream with event organizers ($120 million annual customers x $0.15 per customers). This math assumes that every event will have only one paying customer. This is the inverse assumption of a what is probably closer to reality – only a fraction of events will have multiple customers – but this acts as a solid proxy for size. This size also does not include the fee that marketers will pay to have data analyzed. If the Company can create several products this successful (and this is only a base case), then there is a decent chance it could achieve revenues north of $200 million. This seems like a very reasonable number for a marketing analytics startup with institutional knowledge of a subject matter (meaning: not anyone can just start this business).
Ferrite Labs is part of the Gener8tor Accelerator, based in Milwaukee in 2018. Gener8tor is a strong accelerator with solid national chops to contend with the best. This accelerator has had nearly 59 alumni, which have raise approximately $120 million in follow-on financing. Of those alumni, more than half have raise $1 million or more after the program ended.
Although the deal terms were not disclosed, it is likely that the Company raised~$90,000 through the accelerator in exchange for about 6-7% of equity.
· Steve Robinson: Steve is the Co-Founder and CEO of the Company. His background is in marketing and marketing analytics. He also operates a marketing metrics company that focuses marketing campaigns through iterative campaigns. Steve has more than 15 years of full-time work experience, in various roles, including marketing analytics and development. He also served in the Army National Guard.
· Mike Rosack: Mike is the Co-Founder and solutions architect for the Company. He also currently operates software solutions company in Wisconsin, where the Company is located. Before starting this Company, Mike was a Solutions Architect for several years with Omni Resources and various other institutions. He has well over 14 years of full-time work experience and has a deep background in application / web development.