• by Gavin O'Malley  @mp_gavin, February 9, 2009

Lead-generation startup Demandbase today is expected to release a new software-as-a-service offering for ad sales departments and marketers to better identify, reach, and convert new business.

"We are using advanced analytics, filtering and routing technology to increase lead rates by up to 300%," said Chris Golec, founder and CEO of Demandbase.

In August, the San Francisco-based company closed a funding round worth $8 million led by Sigma Partners, along with previous investors, including Altos Ventures and Adobe Systems.

The funding has helped the company scale its technology platform, Demandbase Central, to support its two existing on-demand services: a free downloadable Web application for B2B sales and marketing people named Demandbase Stream and a more basic pay-as-you-go model named Demandbase Direct.

The Demandbase business proposition is to help companies convert the 98% of un-monetized Web traffic that is already paid for with online investments in Web sites, search and email marketing.

"We are helping companies extract the full value of their investment by showing them which real prospects are visiting their site, and how to reach them right away," said Golec.

"Web site analytics tools are designed for the Webmaster, not sales and marketing people in need of selling opportunities," Golec said. "Our platform and new Stream technology unite Web traffic and B2B marketing efforts together with the sales team."

Analysts portray the business-to-business lead-generation market as one rife with opportunities and challenges.

"The lead management automation market ... continues to attract new players at a rapid rate," Forrester analyst Laura Ramos said in a recent blog post. "The main problems targeted are keeping the pipeline full of marketing-qualified leads and automating the process of nurturing demand not yet ready to buy."

In regard to Demandbase's services, Ramos noted: "I worry that this tool only ends up helping sales pick out cold calls to make, and is not used by marketers enough to segment, collect, and improve their prospecting databases."

According to Golec, 10% to 15% of traffic coming to company's sites is targeted, and potentially valuable to salespeople.

The Demandbase Central platform incorporates feeds from information partners, including D&B/Hoovers, Zoom Info, LexisNexis Business Information, Data Marketing Solutions, List Orbit, Opt-In Builders, and others, as well as information from across the Web.

The platform only tracks businesses with revenue over $5 million. But within its network, Demandbase has already catalogued at least 6 million business contacts.

During its six-month beta period, marketing and salespeople from "thousands of B2B companies" including GE, State Farm, and SAS have tested the platform, according to Golec.

About 25 clients, across multiple industries, have already subscribed to a pre-release of Demandbase Professional including Accolo, Esria, Jigsaw, Shore Consulting and the University of North Carolina, Golec said.