CEO Pitch: 'Ads Suck'…We Make Them 'Suck Less'
Serial entrepreneur Nihal Mehta has founded five startups to date, but he's hoping his latest enterprise is a game changer. Mehta's new business, LocalResponse, helps marketers respond instantly to consumers' real-time content on social networks Facebook, Twitter, Pinterest and Instagram.
He appeared on CNBC's "Power Lunch", which gives CEOs a chance to make a 60 second "Power Pitch" aimed at convincing a panel of experts that their start-up has what it takes to succeed.
LocalResponse's "intent-based marketing" strategy allows companies to target the right ad, to the right consumer, at the right time. The founder's motto: "We think ads suck. We're here to make them suck less."
LocalResponse is not alone in the mobile ad market. There's a lot of competition from places like RadiumOne, 33Across and MillenialMedia to name a few. However, LocalResponse said it distinguishes itself by targeting the consumer to the right ad at the right time.
"We're true one-to-one targeting" says Mehta said. Other companies target ads using approximation, Mehta added, which he believes doesn't work.
The company, founded less than two years ago, boasts several billion impressions a month for major brands like Coca-Cola, GM, and Microsoft. It employs 27 people and has secured over $5 million in funding from venture capital firms Cava Capital, Vodafone Ventures and Verizon Investments.