Software matches music choices to consumer habits

When he was 13 Val Katayev was fiddling with stocks. At 15 he set up a Roth IRA for his parents.

So it may come as little surprise that now, 14 years later, he is founder and chief executive of a Manhasset-based company few consumers have heard of but which is making headlines in the digital music industry.

ToneFuse, which Katayev started 2½ years ago, took advantage of the fact that song lyrics are now the second most-popular search category on the Web, after keywords. So it came up with proprietary software called ToneTargeting, which uses music interests to estimate ages, genders, incomes, buying habits and favorite hobbies. ToneFuse marries the musical interests data to behavioral data, which it purchases.

Ordinary users log on to any one of about 100 music sites that use the software. The users may be hunting about for any kind of music content, such as lyrics or facts about songs or artists. The software matches the user's interest with advertising for brands that want to connect to that particular audience.

Through its technology, ToneFuse is able to tell that Coldplay fans are 44 percent more likely than average to be in the market for travel services. Or that John Lennon fans are 101 percent more likely than average to be pet owners. Or that Jason Mraz lovers are 34 percent more likely to be in a household with income over $150,000.

According to the most recent survey by comScore Inc., which tracks the digital media world, ToneFuse (tonefuse.com) ranked fourth among the Web's top music properties in the United States, after VEVO, MTV Networks Music and AOL Music. ToneFuse has more than 160 million unique visitors a month.

Katayev, who came to the United States with his family from Uzbekistan in 1992 when he was 10, said the company's sales are “well into eight figures.“ The company has 20 employees.

Ernie Canadeo, president of Melville-based ad agency EGC Group, said ToneFuse's technology seemed unique. “This takes behavioral targeting to the next level,“ Canadeo said.

Katayev, who attended Baruch College, started an online video game publication before founding ToneFuse. He said he plans to stay with ToneFuse for years to come.

“I didn't build it to flip it,“ he said.