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DealTime woos US Web users with $25m. campaign
TEL AVIV (October 26) - Two-year-old Internet start-up DealTime.com, which
provides Web users with an online comparison shopping service, has launched
a $25 million advertising campaign to introduce customers to its service -
possibly the biggest ever by an Israeli Internet firm.
It is also the first time that Netanya-based DealTime has launched an
advertising campaign, the company said. It will target users through a
number of media including television, radio, print, and the Internet.
The campaign, which is timed in advance of the Christmas shopping rush, will
run in Boston, New York, Washington, Dallas, Los Angeles and San Francisco.
"It's a lot of money even by American standards," said Aviv Laufer,
DealTime's VP engineering and Israeli site manager. "We are aiming at the
American consumer market and the name of the game is brand-building. We want
everyone and his wife to know about us and that costs money."
DealTime, a closely held company, launched its new shopping service in June.
The service scours the Web for the best deal and can track prices over time
alerting users when the right price comes up.
The site, which saw some one million visitors in September, was founded by
Nahum Sharfman and Amir Ashkenazi in December 1997. Seed capital came from
Israel Seed Partners and follow-on funding by Odeon Capital Partners, Nomura
International, WaterView Partners, Advanta Partners, the Israel Infinity
Venture Capital Fund and Axiom Venture Partners.
In the last private offering the company raised $20m., on a company value of
$60m.
The company now employs 105 people, 65 in Israel and 40 in the US.
The new advertising campaign comes just a week after Yossi Vardi - the man
behind Mirabalis and ICQ - launched his new company, R U Sure, which also
offers users a comparative shopping service on the Internet.
Laufer said DealTime's decision to launch the campaign now has nothing to do
with this. "The campaign was planned a long time ago," he said. "Competition
is a good thing. It assures us that we are moving in the right direction."
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