SocialWire, a startup building Facebook ads for retailers, has raised $1 million in “seed extension” funding. The company is also announcing that Chief Revenue Officer Bob Buch, a former exec at Aol and Digg, is taking on the role of CEO.
When I talked to Buch this morning, he acknowledged that when he tells people that he works in the advertising business, they usually respond, “Oh, I hate advertising.” But that, Buch said, is “why I’m doing this.” The company’s goal to is to create advertising that’s a “win win win” — something that attracts customers for advertisers, makes money for publishers (for now that means Facebook), and actually exposes consumers to relevant products. He compared it to his work at Digg, where the ad formats pushed advertisers to communicate their message in “more newsworthy ways.”
In the case of SocialWire, the company’s working on a technology that it calls Dynamic Product Ads. Instead of just showing people a generic ad for a store (“Shop at Nordstrom’s!”), SocialWire can present them with a specific product that’s targeted at their interests, so the ad is much more likely to be relevant and attention-grabbing.