This article was first published on The Times of Israel and was re-posted with permission.
For those who wonder how a free service like Facebook can make billions a year ($12.47 billion in 2014, to be precise), Israeli ad-tech start-up Bidalgo supplies a partial answer. Bidalgo is a large supplier of automated segmented advertising on Facebook, selling hundreds of millions dollars a year worth of ads for apps and products on the social network.
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That work has paid off handsomely for Bidalgo, said Niv Yemini, Bidalgo co-founder and CTO. As one of the few official Facebook Marketing Partners in Israel, the company expects as much as $100 million in revenues in 2015.
“There are hundreds of thousands of groups on Facebook,” said Yemini. “They all have a specific emphasis, and need to be reached in a specific way. Different groups require different approaches and messages.
“Over the past five years, we have perfected a system of figuring out what those messages are, targeting each segment for advertisers to ensure maximum return on investment,” said Yemini. “Regarding how good the system is, I think the company’s results speak for themselves.”
Established in 2010, the Ramat Gan company has been profitable from day one, said Yemini – and has never had to raise even a shekel in outside funding.
To continue reading this article on the TOI site, click here.