Ji Kim is founder and CEO of DiJiPOP LLC, a Providence-based startup that has developed a new system for manufacturers to run advertising campaigns on retailers’ Web sites. DiJiPOP was one of seven firms that presented at the new startup incubator Betaspring’s event last summer, and since then the company has raised $100,000 in seed financing.
PBN: Could you explain what DiJiPOP is exactly? What makes it different from other e-commerce advertising products?
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
TUNGETT: DiJiPOP is a Web-based platform that makes it easy for manufacturers to run online ad campaigns on retailer Web sites. Retailers can use our platform to create custom online co-op ad marketplaces and auctions. Manufacturers can easily bid for product placements on the retailer’s site, select the products to promote, generate dynamic banners, and manage and measure campaign effectiveness. Simply put, we give online retailers like BestBuy.com a virtual shelf, and allow manufacturers like Sony to pay to push their products to that shelf.
DiJiPOP’s solution gives retailers complete automation, allowing them to scale these programs very quickly, leading to maximum value for their programs. A process that typically takes four to eight weeks can be accomplished using the DiJiPOP platform in a matter of minutes. The chief technology officer of one online retailer called us the Google for online retail ads and compared our competition to Yahoo, inferring that we have the winning formula. I hope he’s right.
PBN: Where did the idea for this come from?
TUNGETT: In 2003, I started building an e-retailer advertising network. I had several sites interested in joining but had to be practical by taking a job instead. In 2007, Walmart.com started running banner ads on their site, leading other top retailers to test the concept. In November 2008, I resumed the build-out of the retailer ad network and DiJiPOP was created. Along the way investors told me that they were mainly interested in companies with technology, so I went to the whiteboard to model the DiJiPOP ad management solution for online retailers. We started building the platform in June 2009.
PBN: You were one of the companies that took part in the first season of Betaspring. How was that experience?
TUNGETT: The Betaspring team has great connections in the state of Rhode Island, and by joining the program, it immediately expanded my network. The mentors have years of startup experience and they go out of their way to help us newbie entrepreneurs. Participating in the program also allowed me to get out of my attic office for a change of scenery and some human contact, which I highly recommend!
PBN: You have also raised seed financing. Was that difficult to do in this environment?
TUNGETT: Yes, it was and continues to be challenging, as we are in the midst of raising a second investment round. In early 2009, investors were very interested in the concept, but with the recession in full force, most could not bring new companies into their portfolios because they had to use their funds to keep their existing portfolio companies afloat.
It should be slightly easier for us to raise our next round because we’ve hit some critical milestones, including bringing on executive management, completing the technology build and signing our first customer. We plan to show revenue in the first quarter of this year and close subsequent contracts which should make DiJiPOP very attractive for follow-on investments.
PBN: As you mentioned, you’ve been meeting with executives from e-retailers in recent months to discuss DiJiPOP. What are they telling you?
TUNGETT: The feedback from retailers is very positive and we’re building a good pipeline of future customers. Most of the people say that they love our company name and that they’ve heard of us before! That’s funny, because we haven’t been around that long. We showcased our platform to thousands of online retailers last summer at Shop.org’s annual summit in Las Vegas and we are also exhibiting at Etail 2010 in Palm Springs, Calif., in February. That should lead to more customers! •
