Just launched ad network RadiumOne is said to analyze online users’ social interactions — think links shared via URL shorteners, photos, status updates, blog posts and videos — to create relationship and interest-based groups that it can use to serve up highly targeted brand advertisements.
The ad network hails from serial entrepreneur Gurbaksh Chanal, a proven veteran in the ad space. Most recently, Chanal sold ad network BlueLithium for $300 million to Yahoo in cash in 2007. At the time, BlueLithium was the fifth largest ad network in the U.S. and the second largest in the U.K.
RadiumOne’s approach to better targeted advertising is through social data, using a process it calls, “social retargeting.” So, RadiumOne will analyze social interactions to create segments of people — called “social clusters” — who know each other and have interests in common. These groups will help the company serve ads based on whether an individual shares similar qualities and interests with a brand’s existing customer base.
Essentially, it’s word of mouth marketing as applied to advertisements. RadiumOne is so confident in its approach that it promises to refund the full cost of campaigns should it not outperform its competitors.
Online advertising is a thriving business on the rise in the U.S — $12.1 billion was spent on online ads in the first six months of 2010. Layering social data over ad displays is likely something marketers and brands will salivate over, especially if the technology yields its promised higher conversion rates.