TargetSpot Inc., a New York-based provider of advertising solutions for streaming audio, has raised $8.6 million in Series B funding. Bain Capital Ventures led the round, and was joined by return backers Union Square Ventures, CBS Corp. and Milestone Venture Partners.
Capping a successful inaugural year in which over 500 radio stations chose to use its innovative streaming radio advertising platform, TargetSpot, Inc. announced the completion of an $8.6 million Series B round of financing, led by Bain Capital Ventures. Existing investors Union Square Ventures, CBS Corporation and Milestone Venture Partners also participated in the round.
Additionally, Jeffrey Glass, a Partner at Bain Capital Ventures, will join TargetSpot's board of directors.
The Series B funds will be used to continue to grow TargetSpot's team of technologists and sales professionals, who are working to meet the challenges of serving as the premier advertising network for the internet radio industry.
“The incredible growth of streaming audio has been the unspoken success story of the internet. Surveys have shown that online radio's listener base has expanded 27% annually since 2000. This has had a phenomenal impact on both terrestrial radio stations and internet-only stations, and has resulted in the spawning of many new web 2.0 music networks,” said Mr. Glass. “TargetSpot has figured out a way to solve the one major problem with online radio, namely how to monetize this burgeoning field and turn it into a profitable revenue stream. The company's cutting edge platform for ad creation and targeting has allowed TargetSpot to quickly and emphatically emerge as one of the leaders in streaming audio advertising. This is a company poised for huge growth and we are happy to be a part of it.”
“We are very pleased that Bain Capital Ventures has chosen to invest in TargetSpot. They have an incredible track record of success and a deep understanding of the interactive marketing space as well as the radio industry. We expect that Bain Capital and especially Jeff Glass will be able to provide strategic advice in navigating our path to the future,” said TargetSpot CEO Doug Perlson.
Since its launch last year, TargetSpot has already begun working with radio stations across the country, including CBS Radio and Entercom Communications Corp, two of the top five broadcasters in the nation, as well as several pioneers of internet radio, and a number of web 2.0 music service innovators.
TargetSpot's patent pending technology allows businesses of all sizes to create, buy and place their own advertising messages within streaming media. Using TargetSpot's online ad platform, advertisers can create cost-effective customized audio, video, banner and text ads with an array of jingles, sound effects and visuals provided by TargetSpot or upload their current creative directly into their TargetSpot account. Ads are then targeted to a specific demographic, location (down to the zip code) and/or station.
Campaign costs vary, with advertising revenue being shared between TargetSpot and the participating broadcaster. Advertisers can open a TargetSpot account with as little as $50.
TargetSpot (www.targetspot.com) is the first end to end advertising marketplace specifically designed for streaming audio. TargetSpot's online ad platform allows advertisers to easily create, buy and place advertising messages on hundreds of internet radio stations, including CBS Radio, Entercom Communications Corp, and Beasley Broadcasting, as well as web-only streaming sites. Advertisers and agencies use TargetSpot to reach millions of engaged streaming audio listeners through national campaigns and/or target listeners by station, location, listening preferences and demographics. Founded in 2007, the company is based in