L2 Inc

About L2 Inc

L2 Inc., established in 2010, operates as a business intelligence firm specializing in benchmarking the digital performance of consumer brands. The company was founded by Scott Galloway, a Clinical Professor of Marketing at NYU Stern School of Business, and Maureen Mullen. The venture originated from a research project at NYU where Galloway developed an algorithm to assess a brand's digital footprint, which garnered significant interest from the companies featured in the subsequent report.

Galloway, a serial entrepreneur with previous ventures like the brand strategy firm Prophet and the e-commerce site RedEnvelope, identified a commercial opportunity in providing robust metrics for brands' digital investments. This led to the creation of L2, which spun out of NYU with the university holding some stock. The firm's core offering is its proprietary Digital IQ Index, which evaluates over 2,200 brands by analyzing approximately 1,650 data points across their websites, e-commerce capabilities, digital marketing, social media presence, and mobile execution. This analysis results in a ranking that provides brands with insights into their digital strengths and weaknesses relative to competitors.

The company's business model is centered on a subscription-based service, where members gain access to in-depth research reports, data tools, and executive education events. This model targets Chief Marketing Officers and senior-level digital marketing leaders at major consumer brands, including names like Procter & Gamble and Unilever. Revenue is generated through these annual membership fees. In March 2017, the technology research giant Gartner acquired L2 for approximately $134-160 million. Following the acquisition, L2 was set to operate as an independent unit within Gartner, continuing to provide its benchmarking services.