The Dailybreak Blog

 Kyle Alspach, VC Editor-Boston Business Journal May 3, 2013

A number of fast-growing startups in the Boston area are offering digital solutions that they say can help brands connect with consumers online in a more effective and deeper way than Facebook.

Sean Corcoran, digital media director at Boston ad agency Mullen, cites three Boston-based startups in particular. He points to: SessionM, which offers rewards for loyal users of mobile apps; Levelup, whose mobile payments app allows users to earn credit toward future purchases; and Dailybreak, which creates customized online challenges such as trivia and games.

“They all have a very smart angle into understanding how people work, and how to get somebody to actually interact with something in a different way from how brands have done in the past,” Corcoran said. “They’re built for Generation Y and Z — for today’s consumer.”

Dailybreak is a good example of the trend, he said, because the startup is proving that consumer-oriented companies can succeed at “getting someone to actually pay attention (to their brand) in their very fast, crazy day.”

Brands that have run campaigns on Dailybreak to date include Procter & Gamble, Chevrolet, McDonald’s, Dunkin’ Brands and AT&T.

Dailybreak CEO John Federman says Facebook is just a starting point for brands to engage with consumers.

“Brands are starting to recognize that, for the majority of Facebook likes, people don’t remember the likes, or the likes were gotten through bots,” he said. “We get real consumer action at scale.”

Originally formed as CampusLive and focused on college students, the startup was renamed last July as part of a bid to expand to wider audiences.

The company’s approach is to engage users on its site, Dailybreak.com, with challenges that last roughly five minutes — challenges meant to be taken when a person has a short break. All of the challenges have prize components, such as gift cards.

The challenges aim to deliver a client’s message by walking customers through a series of actions. The games are entertaining, but also seek to produce consumer action that delivers on marketing goals, Federman said.

Dailybreak reports that 96 percent of users complete surveys, 46 percent submit and share comments, and 45 percent opt-in to e-mail lists.

The startup has run tens of thousands of challenges to date, Federman said.

“What that means is that we have an institutional knowledge” about what works in engaging consumers in this way, he said. “We’ve figured out the process that gets users there — where it feels good and natural, and where people respond at scale.”

Dailybreak only earns revenue based on success at engaging with users, Federman said.

The results have been promising: Dailybreak expects to reach profitability by the end of this year, and is hiring 10 employees to add to its staff of 25, said Federman, who joined as CEO in April 2012.

The company has been backed by $8.5 million from investors including Highland Capital Partners, Charles River Ventures and GSV Capital since 2010.

Mobile uses will be a major focus going forward, he said. In February, the company launched test versions of its mobile app, which has given Dailybreak geo-targeting capabilities for the first time, Federman said. The app is expected to launch to the general public by the end of the second quarter.

 * Originally posted in Boston Business Journal, May 3, 2013. 

Our thoughts and prayers are with the victims, their families and all those affected by the tragedy that occurred in Boston on Monday. Lets come together, no matter what city you’re in to support each other and lean on each other to get through this extremely difficult time. Boston is steeped in a history of patriotism and resilience, that’s why we chose to headquarter our company here. We as a company, a city and a nation will get through this together.

Sincerely, The Dailybreak team