It was announced today that lead generator and Internet marketing company Adchemy raised $19 million. The investment was spear headed by Mayfield Fund and others.

The company said that its online advertising market grew by 50% from 2006 to 2007 and in the first six months of 2007 generated $10 billion in revenue in the United States, according to the Internet Advertising Bureau. Adchemy is building on this market momentum with its current product, Adchemy Actions and a new product to be released in the spring of 2008.

This new product is aimed at improving the placement of consumer needs with the companies that can fulfill them. This new product looks to take another step closer at improving the behavioral targeting model and technology.

Chief Executive Officer of Adchemy, Murthy Nukala commented, “As the economics of online advertising move from a cost per impression or cost-per-click to a cost-per-action model, marketing departments transform from cost centers into revenue hubs. This is a profound shift and we are singularly focused on being a strategic partner to Chief Marketing Officers across all of their customer acquisition programs.”

It will be exciting to learn more about Adchemy Actions and how they implement the CPA model and their advanced ad targeting technology.

Congratulations to all my friends on the Adchemy team!!

Update: Venturebeat goes into a little more detail about Adchemy’s algorithmic ad serving technology

.

.

.