There’s a time to invest in tech and there’s a time to invest in marketing – for Cardlytics, it’s time to do the latter.
The card-linked ad tech company, which enables advertisers to send targeted offers to consumers directly embedded into their online banking experience, announced Wednesday that it’s raised $70 million in Series F funding led by Discovery Capital.
Although some of the money will be invested in product development, a large chunk of the new cash, which brings Cardlytics’ total to a bit more than $170 million, will go towards spreading awareness about its existing product line, said president and COO Lynne Laube.
“We’re one of the biggest companies that nobody’s ever heard of,” Laube said. “People don’t believe how much data we have access to. We’re going to use this money on marketing. We can deliver our services at scale – we just need to create the awareness.”
When Cardlytics partners with a bank, it provides a piece of software that sits on the bank’s own server behind a firewall. Transaction data is fed back to the bank on a nightly basis. A separate piece of software managed centrally by Cardlytics allows advertisers to create segments by interacting with the bank’s software.
For example, an advertiser could ask: How many consumers are there in the system who have spent more than $100 in my store over the last three months? The Cardlytics software would then communicate with the bank’s software to come up with a number. From there, the advertiser could issue a command, such as: Track those high value consumers identified by the software for 30 days to see how their spending shifts.
In that way, a consumer’s personally identifiable information never leaves the safety of the bank’s environment and individual information doesn’t have the chance to leak out.