Amazon's (ticker: AMZN) chief scientist, Dr. Andreas Weigend, has jumped ship for privately-held Poindexter Systems. Poindexter is developing behavioural advertising technology; Wiegend led Amazon's development of predictive models used for recommendations and cross-selling.
Weigend, an expert in data mining and consumer behavior, will guide Poindexter's product development and strategy. The company's second-generation ad-serving model incorporates clustering and predictive modeling to identify audience behavior to deliver "the right message, to the right customer, at the right time," said Rich Person, chairman and CEO.Quick thought:
- Advertising, whether keyword-matched, contextual or behaviourally targeted, is the most profitable business of the Internet economy. In contrast, Amazon needs to find more profitable ways to monetize its expertise in Web analytics, site design and behavioural targeting than increased book sales.
- In light of that, Weigend's behaviour was entirely... predictable.