REVShare, a Temecula, Calif.’ company that lets advertisers to bid for television time on a cost-per-action basis, has raised $20 million in a first round of funding.
The private equity firm Carlyle Group and H.I.G. Ventures co-led the round.
The auction/exchange model contrasts with the traditional method of charging based on projected audience size.
Founded in 1989, REVShare’s exchange allows advertisers to specify a price they are willing to pay per response (i.e. when someone is prompted to call a toll-free number or visit a website) and the air time is allocated according to return on investment. Under this system, stations are able to sell their inventory without revealing the effective rate of their ads, and advertisers are able to pay rates that are determined by a combination of market forces and response to their ads.
Here are the full details.