Bidalgo targets $250 million in 2017 revenue for AI-based mobile advertising platform

Bidalgo, has created an automated advertising platform for mobile app developers and publishers, and the Tel Aviv-based company expects to close 2017 with more than $250 million in revenue, up dramatically from $86 million in 2016.

Peli Beeri, CEO of Bidalgo, said in an interview with VentureBeat that the company has averaged $25 million in revenue for the past three months, and that means its revenue run rate is $300 million going forward. That means that it could generate $300 million in revenue in the next 12 months as it becomes a one-stop shop for those who buy mobile ads to promote their apps and games.

He said that an increase in clients, global expansion, and additions to the company’s services have fueled the growth. Bidalgo is an official marketing partner of Facebook, Instagram, Google, Snapchat, and Pinterest, and it also covers Apple Search Ads. Bidalgo’s AI-based algorithms automate and optimize the entire ad-buying process, including automatic creation of new ads and ad content managing how much to pay for each ad.

The company has delivered more than 25 million installs in the past year and generated more than $1 billion in revenue for app developers, based on the revenue from those installs. Bidalgo’s algorithms take approximately 2.5 million actions per day to optimize campaign performance on behalf of its clients.

“App marketing has become extremely complex, making it practically impossible for marketers to scale their apps all on their own,” said Beeri. “The market is up, but Bidalgo has offered a self-serve, one-stop shop to help app marketers acquire new users, and that has helped us grow faster than the market.”

Bidalgo started in Israel in 2010, and the company became a Facebook ad partner in 2011. It opened a San Francisco office in 2015. The company now has 80 employees, a number that is up 50 percent since the start of the year. Beeri anticipates the company will have 100 employees by the end of the year. Israel has a strong heritage in marketing and advertising technology, and Bidalgo gained momentum early by working with Israeli game and app companies, such as Playtika and Plarium.

Now, hundreds of advertisers — from early-stage app developers to Fortune 500 companies — rely on Bidalgo’s platform and services to scale their user acquisition programs. Bidalgo’s customers include Playtika, Plarium, Scientific Games, Wargaming, and dozens of other top grossing app developers.

Automation, which artificial intelligence software enables, helped Bidalgo gain traction with advertisers, Beeri said.

“It gave us an advantage in achieving results for user-acquisition managers,” Peeri said. “We started out small, but today, our customers are spending millions with us.”

Beeri said that the company provides a dashboard that serves as a way to view a bunch of campaigns across platforms, all at once.