Web-based TV Ad Buying Firm Spot Runner Gets $40 Million Funding

Spot Runner, which offers small businesses a web-based solution for TV advertising (think of it as Google AdWords for TV), has raised a big $40 million third round…the round in the LA-based company was led by CBS Corp. and two advertising holding companies, WPP Group and Interpublic Group. Investment banker Allen & Co., Lachlan Murdoch, the eldest son of News Corp. Chairman Rupert Murdoch, and Israeli investor Vivi Nevo also contributed to the deal. Earlier this year the company announced a $10 million first round…In all, Spot Runner has raised $60 million. The company was founded two and a half years ago but only came out of stealth mode this past January.
The company’s cofounders, Nick Grouf and David Waxman, previously co-founded PeoplePC and Firefly Network, which were acquired by EarthLink and Microsoft, respectively.
The new funds will be used to develop additional services in new mediums, including IPTV, VOD and internet video, as well as to improve its existing offerings. Interpublic and WPP intend to use Spot Runner’s services to help clients target ads in local markets, while CBS believes Spot Runner’s services provide an efficient system to sell its diverse ad inventory.
LAT: Spot Runner uses the Internet to create low-cost, well-produced ads. Local business owners tap an online library of thousands of stock commercials to customize and schedule their own TV spots. The company then places the ads on local cable and network TV, charging a fraction of the fee a conventional ad agency would collect. Spot Runner’s TV ads cost as little as $499, compared with tens of thousands or more for a conventional commercial.
More on the funding in the PDF release here.

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