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TargetSpot, a provider of advertising for online radio services, announced today that it has raised $8 million in its most recent round of fundraising.

The network is geared toward music radio services like CBS Radio and Yahoo Music. Advertisers can purchase 5-, 15- and 30-second spots for online radio networks through TargetSpot. Those ads are streamed through TargetSpot’s software to each online radio service. The company has its own advertising serving technology and gives each advertiser the tools to drop an ad directly into one of their distribution partner’s audio streams.

In addition to running the ads, TargetSpot is able to track what kind of listener is tuning in and can tailor the ad accordingly. TargetSpot can track where the listener is geographically, what kind of radio service they are running and what type of music they are listening to, and hand that information off to advertisers that want to develop a better targeted advertising package.

TargetSpot CEO Eyal Goldwerer estimates there are roughly 70 million people listening to online radio services. That number probably isn’t too far off, as Pandora announced it passed the 50-million user mark last April and there are a host of other music-streaming services like Grooveshark and MySpace Music on top of that.

The company plans to use the newest funding to expand its analytics suite and make it easier for advertisers to deliver better targeted advertising, Goldwerer said. He also said the company planned to increase the size of its sales force.

The New York, N.Y.-based company was founded four years ago. It acquired Ronning Lipset Radio, another advertising firm, to become one of the largest radio-centric advertising firms in 2008. Its investors include Union Square Ventures, Bain Capital Ventures, CBS Radio and Milestone Venture Partners.

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