Why We Started Reachsocket
In late 2013, it became clear to me that more needed to be done to unlock the value of rights holders’ digital audience data to create ways for it to generate revenue. At that point, this data was controlled and owned by the social networks and platforms who benefit from the audiences attracted by rights holders, such as artists, athletes, live events, and other entertainment properties.
My previous company had worked closely with the major live event promoters on advertising and marketing objectives. We were aggressively using online and mobile channels to organize events and sell tickets, but only for 3-4 months out of the year on aggregate. Couldn’t we do more with these digital assets when they otherwise were just sitting there? I partnered up with a long-time friend, Rob Ellis, who shared this thesis and formed Reachsocket.
We thought, “how much ad revenue do Facebook, Twitter, Tumblr and other platforms share with the people and companies who bring the audiences to their platforms in the first place?” So, we asked around. Meeting after meeting with music festivals, sports teams, entertainers, talent agents and other influencers, we would ask: “How many checks has Facebook sent you for entertaining and embracing the millions of fans you have on their platform - to which they serve ads using data you help provide?”
Their answer: “None.”
Catalysing our efforts, this new understanding of misappropriated value inspired the creation of our audience appraisal technology. First, we had to show rights holders how much value there was hidden within their audiences - what is the dollar value of digital influence? We wrote algorithms to accurately determine these metrics and backed them by actual market data across dozens of real-time ad exchanges. Tracking this information and making it available enabled properties to offer brands exclusive advertising segments, giving advertisers the opportunity to buy ad impressions everywhere and reach the right audience, guaranteed. Sponsors of live events can now buy hyper-targeted media to reinforce and extend their investment in event marketing beyond the physical limitations of the events themselves, creating a lasting connection with consumers.
All of this leads us to where we are now. We’re building the next generation of sponsorship and brand activation technology for the biggest live events and entertainment names in the world and couldn’t be more excited about what lies ahead.
by Steve Manuel, Founder & CEO/CTO← More Insights