In-image ad startup Image Space Media has raised $2.9 million in a first round of funding led by New Atlantic Ventures. Image Space Media puts small overlay ads on the lower half of images on a website; ads only show up when a user mouses over a photo (See an example here). The company says its system — which “serves hundreds of millions of impressions per month” — provides publishers with additional “incremental” ad revenue, while still allowing them to participate in traditional ad networks.
Image Space Media is led by Jesse Chenard, who was chief strategy officer of heavily funded online video ad network Tremor Media, until he left as part of a management shakeup at that company over the summer.
The cash will be used in part to “support publisher network growth.” The startup also announced that Limelight Networks (NSDQ: LLNW) co-founder Michael Gordon is joining its board.