The company will use the proceeds to build out its platform. Two-year-old Magnetic, which was previously known for contextual ad serving as DomDex before changing its name, raised a $1.25 million seed round in March from NYC Seed and IA Capital Partner.

Magnetic is headed by founder Josh Shatkin-Margolis. He spent three years working at Yahoo (NSDQ: YHOO) as director of engineering responsible for data processing within the advertising division, working on the Panama ad system—which some may remember was highly touted by the team under then CEO Terry Semel, but was ultimately explained as one mere step to the creation of the company’s APT display ad management and targeting platform. Before Yahoo, Shatkin-Margolis put in five years at DoubleClick, where he served as principal architect for all banner ad serving technologies.

As a sign that retargeting was becoming more important to advertisers, in March, Google (NSDQ: GOOG) began beta testing a new conversion reporting tool for AdWords called “search funnels,” which shows what ad placements a user has seen before making the decision to click on an ad. The feature was meant to combine the direct response functions of most display ads by making AdWords more appealing to brand campaigns, which are more about persuading consumers to take an action over time.

And when GSI Commerce bought retargeter FetchBack earlier this month, CEO and ex-Gannett (NYSE: GCI) Digital head Chris Saridakis hailed retargeting as “is far more effective than traditional display advertising” that can “deliver dramatic, measurable results for our clients looking to reconnect with customers through targeted and relevant messages that drive conversions effortlessly.”