Optimizely raises US$58 million to build out personalisation platform

Five-year old A/B testing software vendor's latest cash injection brings its total funding to $146m to date

A/B testing software vendor, Optimizely, will expand out its personalisation platform after securing US$58 million in a new round of investment funding.

The five-year old company raised the dollars in a Series C funding round led by Index Ventures. The investment sees Index general partner, Ilya Fushman, joining the vendor’s board of directors. The latest cash injection comes after Optimizely raised $57m in a series B funding round in May 2014, led by Andreessen Horowitz, and brings its total funding to $146m.

Announcing the news via a blog post, co-founder, Dan Siroker, said the company had doubled its revenue each year for the past five years, and by more than 100 per cent since its Series B funding, and was now the most adopted website optimisation platform among the Alexa top 10,000 websites. The company claims to have more than 7000 customers including Microsoft, Walt Disney Company, Asics, Spotify and Four Seasons Hotels and Resorts.

The A/B testing offering was derived from Siroker’s efforts around the 2008 Obama presidential campaign as its director of analytics, where he raised more than $100m in additional revenue for the campaign. Siroker also formerly worked as a product manager at Google.

“For us, our customers and our partners, this new round of funding represents an opportunity for Optimizely to focus on our long-term objectives of building products that will enable every company to provide their customers with the best possible experiences,” Siroker said.

And that means a major push around Optimizely’s Personalisation platform.

The platform was launched in June last year and uses machine learning and predictive analytics to tailor online visitor experiences using first- and third-party data insights. Customer behaviours are identified using visual tags and are based on browsing behaviour, demographic information and contextual insights. Platform features include ‘recommended audiences’ segmentation and management, Optimizely’s ‘stats engine’ and performance measurement tools and real-time behavioural and custom targeting.

Siroker said personalisation had become a “dirty word in our industry” because vendors have overpromised and under delivered. Optimizely’s platform was about giving companies the tools to personalise online experience without needing dozens of engineers or analysts, he said.

In a recent report on online testing platforms, Forrester Research’s James McCormick labelled Optimizely’s Experience Optimisation Platform a “disruptive force” in the online testing space, citing both its ease of use and self-service capabilities with enterprise-grade feature sets as a strong combination. He also highlighted the need to expand its personalisation capabilities for future growth.

“To maintain its trajectory, Optimizely must broaden its appeal to enterprise users by developing a robust professional services practice and continuing to build out native capabilities for behavioural targeting and personalisation,” McCormick stated in the report.

According to Forrester, Optimizely’s key competitors include Adobe, Maxymiser and SiteSpect.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

​ Creating a purpose-driven brand

So you want to be a brand with purpose. But what does it actually mean to build a brand with real meaning?

Paul Chappell

Partner and managing director, Brand + Story

Customer experience crisis: Proactively mitigating the risk of broken promises

Last Friday, three weeks after United Airline’s spectacular customer experience disaster, customers received a letter from the company’s CEO, Oscar Munoz.

The politics of branding

There have been some real doozies lately. I’m speaking of campaigns where brands have dipped their toe in - or jump straight into the deep end – of the political spectrum, aligning with social causes that seem to be the flavour of the day.

Paul Chappell

Partner and managing director, Brand + Story

Grate post, thanks for the post.No matter what your business is, if you do no not rank among the top most search results of Google, Yahoo...

Rahul

Image intelligence:10 must-see infographics for marketers

Read more

Thank you Shane Blandford for carrying my Smarketing vision into KM !

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

Thanks for helping me putting those threads of thoughts together. Simplification and connection - neat idea.

Mark Bayly

Tips from IAG on how to craft human-centred design

Read more

The problem with Box is that they made a couple of big mistakes - they first hired a bunch of unprepared kids and gave them big roles and...

Tim Woods

CMO interview: Why Box's marketing chief is rewarding staff for failing

Read more

At this point, being hit hard will also be subject for a detailed study. In honesty, too early to tell but there are precedents to follow...

Sean Lindeman

Australian Government to abolish 457 visa program

Read more

Latest Podcast

More podcasts

Sign in