One True Media has secured $9 million in new funding and says it will use the money to expand SpotMixer, its do-it-yourself online video ad service.
Company officials said the new funding illustrates that, despite the recession, investors are willing to back companies with products designed to help small- and medium-sized businesses save money during tough economic times.
SpotMixer, a service of One True Media, provides templates and tools for creation of online video ads. One True Media VP of Product Marketing Kathleen Farley said the partnership with Google is part of the company's effort to simplify ad distribution. "Distribution can get pretty confusing," she said. "There are a lot of machinations you have to go through to place ads."
The company is in the process of adding other networks to its distribution network, said Farley. One goal is to be able to provide comprehensive "data about performance in terms of what types of ads work well," she said."
Google's approval last year of SpotMixer as an authorized AdWords reseller should help SpotMixer streamline the distribution of videos created by its advertiser clients, via the Google AdWords program and over the Google Content Network, said One True Media Founder and CEO John Love.
The service is heavily used by real estate sales people, home renovators and "anyone concerned with images," said Farley.
"Once we got the approval from Google, we started implementing their API," said Love. "That allows us to plug directly into their system. Our customers can now, in one-stop-shop fashion, create an ad and distribute it. We will provide them with assistance if they ask for it...but if they are savvy enough, they can do it all themselves."
In addition to using Google AdWords, SpotMixer customers can also distribute their videos via Yellowbook, Superpages and other Web sites within the SpotMixer network. The can also be disseminated as TV spots via Google TV Ads. Customers that use the SpotMixer network pay a minimum of $49 per month. Those that choose only the AdWords distribution set their own daily budgets, starting at $10 per day, said Farley and Love.
The Series B round of funding includes DAG Ventures as a new lead investor. As part of the deal, DAG Managing Director Young Chung is joining the board of One True Media. The funding also includes an investment from NTT Finance and additional money from Kleiner Perkins Caufield & Byers, the company's Series A lead investor.
Since SpotMixer launched in May 2008, about 10,000 video ads have been created on SpotMixer and an additional 10,000 video ads were created, using SpotMixer tools, on Yellowbook and SuperPages, said company spokeswoman Krista Van Lewen. "2,500 video ads were created in December alone," added Lewen.
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