Despite recent set backs, the advertising industry is still bullish on behavioral targeting, as evidenced by the fact that communications holding firm WPP Group is among several investors that recently poured $5.5 million in financing into Proclivity Systems.
An investigation this summer by the US House Telecommunications and the Internet Subcommittee into the data collection practices of Internet network operators focused on tracking technology from NebuAd Inc. (see this DMNews article). As a result, several customers canceled trials of the technology and the company’s founder resigned. Congress is reportedly investigating the need for federal restrictions on advertisers’ tracking of consumers behavior.
In a press release this week announcing Proclivity Systems new financing, the company is referred to as the developer of a platform that “provides predictive insight into consumer shopping and purchasing behavior for advanced target marketing and merchandising.”
The financing was led by Fung Capital USA Fund and included co-investor Pilot Group, in addition to WPP Group. The funds will be used to enhance Proclivity’s technology platform, add incremental management and expand sales efforts into new markets.