According to Justin Moresco at Red Herring, Target Spot is proving to be an investor’s delight:
Online radio ad network TargetSpot closed an $8.6 million second round of venture financing led by Bain Capital Ventures.
The New York City company, launched in 2007, plans on using the infusion of capital to expand its engineering and sales teams. Like most advertising networks, Target Spot specializes in bringing advertisers together with broadcasters that have available airtime. What seems to make this company more innovative and attractive to investors is the fact that it puts ad development directly in the hands of the advertisers:
TargetSpot, founded in 2007, hopes to build up its pool of advertisers by offering free and “easy-to-use” ad creation tools. This could be attractive to smaller businesses that don’t have the resources to pay professional studios to create ads. The ad network’s clients can record ads directly from their computers using an ordinary microphone, according to the company’s web site.
Since its launch last year, TargetSpot has worked with Internet-only stations as well as traditional radio stations, such as CBS Radio and Entercom Communicatioins Corp, which stream content over the Internet as well as over the air.
In addition to the company’s online ad development tools, it has a unique slant on selling airtime/streamtime: online auctioning. Target Spot includes an online bidding platform that allows advertisers of all stripes to bid for airtime on the various stations involved, an approach which should result in an overall increase in revenues for the stations.
Once again, we see a fresh new company stepping up to the plate, a company that is evolving its approach in order to embrace the Janus-like duality of broadcast radio as it reaches out to the internet audience.