Olapic raised $15 million from Felix Capital, Unilever Ventures, Fung Capital and others to help expand its brand of social media content marketing.
The four-year-old tech company, which has more than 200 clients, ranging from Target to L’Oréal Paris, helps brands use social media to drive sales. Olapic takes user-generated content from Facebook, Instagram, Pinterest and Twitter and puts it on a brand’s digital flagship, helping companies see a return on investment from their social media efforts.
Including the latest round of funding, which was led by Felix and also included participation from Longworth Venture Partners, Michael Lazerow, Fabrice Grinda and Jose Marin Investments, the company has raised a total of $21 million. Olapic’s $5 million Series A round of funding in July 2013 was led by Fung Capital USA, the private equity arm of the families of Victor and William Fung.
Pau Sabria, co-founder and chief executive officer of Olapic, said seeing user-generated photos alongside an e-commerce site’s product shots helps consumers contextualize an item better and ultimately translates into higher conversions.
“It is still hard for brands to measure true ROI from social,” Sabria said. “But when you take a photo from Instagram and are able to track that photo’s performance, you can instantly see the revenue and value that each photo offers.”
Overall, he said the company sees a 40 percent increase in average order value among consumers who have interacted with photos on a site before purchasing. Additionally, the 8.6 percent jump in conversion rates when user-generated content is present on a site increases to 10.9 percent when the customer interacts with one of these images.
Since 2013, revenues generated for clients have jumped from about $50 million to a projected $400 million this year with the integration of e-mail, advertising and syndication components, said Luis Sanz, Olapic’s chief operating officer.