An auction-based ad startup called Topsport has just boosted its valuation to $110 million through a recent seed funding. It only raised $8 million in seed funding, but its valuation is now at $110 million.
Topsport Uses APIs for Auction-Based Advertising Technology
According to the story by TechCrunch, as the shift to user privacy is affecting different marketplaces, the company is looking at a way for them to innovate without dealing with the privacy nightmare.
Through exploration of Ostrovsky's work regarding auctions, Topsport was started in 2021, working to give an "auction-based advertising technology" through the use of APIs. This would allow smaller vendors to promote their products and services much more easily without having to rely on cookies.
How Does Topsport Ads Function?
Although as of the moment, cookies are still somewhat effective, the article by TechCrunch describes them as "poised to go away." The way they approach retail media technology is by allowing smaller businesses to utilize auctions in order to create more effective advertising.
Through the API installation, the campaign can start and run everything on video ads, banner ads, and sponsored listings. Users also can control how their ads are shown, the quality of their ads, the relevance measured, and who can launch these particular campaigns.
How Long Do the Auctions Last?
As per serial entrepreneur Francisco Larrain, the auction can run in "just as little as 20 milliseconds at 10,000 requests per second." Topsport gives users suggestions through algorithms to help them maximize conversions and clicks when it comes to bids.
Topspot also includes its very own auto-bidding feature to act on behalf of the users when it comes to cost-per-click ads. This allows the vendor to easily put in a budget and time period, and Topsport does all the work.
How Does Topsport Navigate Around the Privacy Issue
Regina Ye, a previous Shopify seller, fed up by recalls who teamed up with Larrain to start the company, announced that the Topsport is capable of between 2x to 4x return "depending on the marketplace."
Ye shared her two cents when it comes to ads saying that she does not agree that the ad world has to be a "guessing game." In addition, she also noted that Topsport fills the gap when it comes to the lack of privacy data and provides a clean way for users to advertise.
As per Ye, machine learning and math are two big components of how they function, and what makes them different is their ease of use. The difficulty in advertising is often why a lot of ad tech has "traditionally had a bad rep."
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Written by Urian B.
