Local startup LocalResponse is apparently growing like a weed. As we’ve reported before, the platform leverages your social media detritus to deliver hyper-targeted ads. (Translation: You check into a store, and you get a coupon that’s actually useful.)
Now, it sounds like that approach is quite literally paying off. According to TechCrunch, CEO Nihal Mehta says the company is within striking distance of profitability, and he expects to cross that particular milestone sometime in Q3. Just in time for Christmas shopping.
The company has worked with heavy hitters like Coca-Cola, General Motors, and Walgreens and currently boasts a roster of 75 advertisers. What intrigues the blue chip types? “We think that being able to create much more targeted ads based on social can close the gap between mobile versus desktop ad spend,” he told TechCrunch.
He also shared a few wonkier details about the ad network, which is reportedly serving up 7 billion impressions per month. But before we get all, “a million dollars isn’t cool,” there’s a catch:
To be clear, it isn’t actually filling all of that inventory, or even close to 100 percent, as CEO and co-founder Nihal Mehta admits. However, he says that if LocalResponse could fill even half of it, say at a $6 CPM (the rate for each thousand impressions), it would still be a big business.
If only we could withdraw speculative dollars from an ATM machine.