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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: ABC's Leisa Bacon

In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.

More Videos

Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...

Abi TCA

CMOs: Let middle managers lead radical innovation

Read more

One failing brand tying up with another failing brand!

Realist

Binge and The Iconic launch Inactivewear clothing line

Read more

I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...

Nancy Tunick

The personal digital approach that's helping Vision RT ride out the crisis

Read more

I am 57 and diagnosed in June 2009. I had a very long list of symptoms, some of which were. Keeping right arm close to my side while walk...

Nancy Tunick

Gartner survey: CMO spending hit by COVID-19

Read more

Audible did such a great job on their marketing and at the same time, there are no false promises. The support, quality, variety all good...

Vitaliy Lano

Audible's brand plan to build the value of audiobooks

Read more

Blog Posts

MYOD Dataset: Building a DAM

In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.

Kshira Saagar

Group director of data science, Global Fashion Group

Business quiet? Now is the time to review your owned assets

For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.

Olia Krivtchoun

CX discipline leader, Spark Foundry

Bottoms up: Lockdown lessons for an inverted marketing world

The effects of the coronavirus slammed the brakes on retail sales in pubs, clubs and restaurants. Fever-Tree’s Australia GM Andy Gaunt explains what they have learnt from some tricky months of trading

Andy Gaunt

General manager, Fever-Tree Australia and New Zealand

Sign in