Video ad network Tremor Media has pulled in $40 million in new funding as advertisers prove they’re willing to increase spending on online video ads as an alternative to broadcast television.
“Brand advertisers are beginning to move seven-figure budgets into online video,” CEO Jason Glickman told me during a phone call late Tuesday. “We’re starting to see large pieces of the $70 billion per year spent in television move online. Some advertisers are making videos that are shorter than TV — 15 seconds instead of 30. Many of them are taking their television creative and putting it online.”
Tremor’s new funding comes from Draper Fisher Jurvetson Growth Fund, Triangle Peak Partners, and existing investors and will be used to accelerate its R&D program and to expand into new channels. Prior to this round, Tremor had raised $39.4 million since being founded in 2005.
In a recent report, the company said that popular types of Web video ads among advertisers are “interactive pre-roll,” a clip that can be clicked on and possibly played with as a game, and “expanding video-in-banner,” a clip that grows onscreen and plays at a larger size when the site visitor interacts with it. Other video ad networks such as BrightRoll are seeing a similar demand for these kind of units.
Tremor is improving its Acudeo ad delivery platform to identify individual website visitors’ demographics on the fly, rather than needing to lump entire sites’ audiences into buckets. The company currently claims to serve 1,700 publishers one billion video ad impressions per month.
“In the last two or three quarters,” Glickman said, “there’s been a jump ball between broadcast and online markets. We’d never been on that court before.”