Tuesday, September 25

ClipBlast Launches Video Widget

CLIPBLAST! UNVEILED ITS NEW CLIPBLAST! Video Widget on Monday. The
Web-wide video search and navigation tool resides on the desktop,
enabling search, navigation, browsing and viewing of the Video Web
without having to launch a browser or visit a specific Web site.
ClipBlast! is working with video-content providers--including MySpace,
Showtime, Fox, CBS and independent producers--to create customized,
branded versions of the Video Widget for specific target audiences.

Branded and Video Advertising Key to Future: eMarketer's Ramsey

AS THE ONLY GROWTH MARKET in the world of media and marketing, online
ad spending will expand 28.6% this year, according to eMarketer CEO
Geoff Ramsey. Next year, digital ad spending will increase
32%--amounting to nearly $28.8 billion, Ramsey said in his opening
remarks at OMMA New York on Monday morning. The future? Branded and
video advertising, said Ramsey, assuring that branding dollars are
fast on their way to matching the budgets spent on search.

"With video, you can do a heck of a lot better job of storytelling," he said.

Now big business, Web videos are watched by 72% of Web users--or 135
million people--every month. Ad spending around them is set to hit
$775 million this year, and $1.3 billion by next year.

With YouTube in tow, Google is poised to lead the burgeoning video
market, and grab the bulk of ad dollars flowing into the medium,
according to Ramsey.

What are the greatest challenges facing online marketers today?
Audience fragmentation; ad clutter; consumers' eroding trust in
marketers; and something Ramsey likes to call "trend-itis"--or the
propensity for marketers to blindly follow trends without implementing
proper checks and balances.

Ramsey spent a good portion of the morning knocking various research
firms and the industry at large. TNS Media Intelligence, he noted with
disbelief, has yet to factor search into its online ad spending
numbers.

As things stand, 76% of marketers say ad agencies don't provide them
with sufficient data on ROI. Most marketers, said Ramsey, express a
"vague undercurrent of discontent with their agencies."

Additionally, nearly a fifth of consumers (18%) report that they
dislike all forms of advertising, while only 6% currently believe the
claims made by marketers.

NBC Honcho: Hulu Will Have Failures

EXPECT FAILURE FROM HULU, ACCORDING to George Kliavkoff, NBC
Universal's chief digital officer. Just as NBC expects some of its new
fall TV series to flop, NBC Digital is factoring some degree of
failure into its joint venture with News Corp., he told a packed crowd
at OMMA New York on Monday.

"The most important thing is to not be presumptuous about what's going
to work," Kliavkoff said.

But to fail successfully, he added, you have to fail fast in order to
quickly identify your errors and cut your losses. Success involves
setting up "processes to fail fast," he said.

His message to marketers? "Anything you want to try, we'll try it with you."

As competitive as the media business has become, there has never been
a better time to be a content owner, according to Kliavkoff. The
reasons for that include unlimited distribution opportunities, new
tools for engaging with consumers, and shortly, proper tools to
measure that engagement.

While broad distribution is a key factor for Hulu, NBC will provide
incentives for viewers to spend time on the Hulu destination site,
Kliavkoff said.

When the site launches next month, visitors can expect more tools for
experiencing and engaging with videos, higher-quality videos, and the
ability to take "something"--most likely content--away from the site.

According to Kliavkoff, the single biggest opportunity for NBC is
mobile, while the current revenue split makes it hard to pay for the
creation of suitable content.

"Think what your cell phone means to you as opposed to your TV," he
suggested to the audience.

There is no reason why advertising has to necessarily worsen the
viewing experience, Kliavkoff believes. "Folks don't want ads that are
not relevant," he said. "When I'm in the mood for a car, I'll sit
through half an hour of car ads."

A potential concern for Kliavkoff is the effect that NBC's broad
distribution will eventually have on its syndication business. "It's
potentially a point of exposure," he admitted on Monday.

For his part, Kliavkoff does not believe that viewers will ever prefer
consumer-generated content over premium fare.

Particularly for marketers, he said, "at the end of the day, premium,
produced content wins."

What does concern him, said Kliavkoff, is how much time is spent
creating and sharing CGM. "We're worried about anywhere [people are]
spending time that they could be spending watching our video," he
said.

Monday, September 24

Microsoft Is in Talks To Buy Facebook Stake

WSJ:

Microsoft Corp. is in talks with Facebook Inc. about making an
investment in the social-networking startup that could value Facebook
at $10 billion or more, according to people familiar with the matter.

The talks set up another likely face-off between tech titans: Google
Inc. has also expressed strong interest in a possible Facebook
investment, said people familiar with the matter.

Microsoft's approach to Facebook in recent weeks with proposals to
invest in the fast-growing site is part of the software giant's effort
to catch up with the Internet rival Google. If successful, Microsoft's
talks with Facebook could give it an up-to-5% stake in the
closely-held startup -- a stake potentially valued at roughly $300
million to $500 million, the people familiar with those talks said.

The people familiar with the matter said that the discussions are
still preliminary and Facebook could wind up not taking an investment
from either Microsoft or Google. Factors in the discussions include
the valuation the suitors would offer to Facebook and other business
considerations they could contribute to sweeten any deal.

A Facebook spokeswoman and spokesmen for Microsoft and Google declined
to comment.

Facebook, which is used by over 40 million people to set up their own
personal Web pages, to communicate with each other and to share photos
and videos, has emerged as the poster child for the latest Internet
wave. The company expects this year to have a profit of $30 million on
revenue of $150 million, according to people familiar with the matter.
Based on that, a $10 billion valuation for the company is sky-high.
But an investment in Facebook could give Microsoft or Google greater
opportunities to tie their services in with Facebook at a time when
they've both recognized that social networking is changing how
consumers tap into their core activities, such as Web search and
email.

The Facebook approach is also part of Microsoft's urgent attempt to
strengthen its ad "platform," which lets advertisers automatically
place ads on Web sites and on Microsoft's Internet search engine.

Microsoft's platform strategy isn't unique: Google and Yahoo Inc. are
also racing to establish their platforms as the broker of choice for
hundreds of thousands of advertisers on millions of Web sites. That
approach has taken on urgency as users and advertisers increasingly
spend time and dollars on sites besides the big, established Web
portals. Facebook itself is working on an ad platform that would let
marketers target users with ads based on their personal information,
using an automated Web-based system, according to people familiar with
the matter.
[Mark Zuckerberg]

Microsoft and Facebook may also expand an exclusive agreement signed
last year under which Microsoft serves display ads to Facebook,
according to a person familiar with the matter. The existing deal is
expected to bring in about $75 million for Facebook this year and a
total of at least $200 million to $300 million through 2011, say
people familiar with the matter. The actual numbers will depend on
Facebook's traffic growth and other factors, these people say. That
existing agreement covers only the U.S. and expires in 2011, but the
companies are discussing whether to extend it for a longer period and
expand it beyond the U.S., this person said. This person said that
Facebook has also discussed possible ad relationships with Google,
though the existing Microsoft agreement limits the options.

Facebook, meanwhile, is considering raising as much as $500 million in
cash that could be used for acquisitions, investing in computer
infrastructure and adding to its roughly 300-person headcount, said
the people familiar with the company.

Facebook has indicated that it might hold out for a higher valuation –
as much as $15 billion – than Microsoft is willing to agree on, the
people said. Such a move could attach a high value to any Facebook
pre-IPO shares it would use in acquisitions, to its advantage.

Facebook is also considering raising funds from financial investors,
in addition to or instead of an investment from a strategic investor
like Microsoft or Google, one person said. The company has so far
raised about $40.7 million from venture-capital firms including
Founders Fund, Accel Partners and Greylock Partners.

Microsoft has considered trying to buy the company outright, but
people familiar with the matter said it's unlikely at this time.
Facebook founder Mark Zuckerberg has steadfastly kept his company
independent with the goal of eventually taking the company public. In
a round of negotiations last year, Mr. Zuckerberg rebuffed acquisition
approaches from Microsoft, Yahoo and others.

Tremor Media Bolsters Board

VIDEO AND RICH MEDIA ADVERTISING network and technology provider
Tremor Media has added four advertising and marketing industry
veterans to its board of advisors.

Joining the New York-based firm as advisors are David Cohen, executive
vice president and U.S. director of digital communications for
Universal McCann; Jack Haber, vice president of e-business for
Colgate; Jack Myers, founder and CEO of Myers Publishing; and Alan
Schulman, senior vice president and executive creative director, imc2.

Swarmcast Expands Availability of its Autobahn Accelerator to Support Veoh.com

Autobahn Accelerator, the free tool that boosts download speeds for
online videos, is now available for Veoh.com. Autobahn Accelerator
enhances the user experience for Veoh subscribers by providing faster
video loading and more reliable streaming of bonus content, television
shows and movie previews, including NBC's "Heroes," Showtime's "Weeds"
and Lionsgate's "Good Luck Chuck."

Autobahn Accelerator for Veoh has been developed by Swarmcast, the
provider of multi-source streaming technology for high-quality online
video delivery. The accelerator application can be downloaded at
www.getautobahn.com. It is the third in a series of accelerators from
Swarmcast and follows the launch of Autobahn Accelerator for iTunes(r)
and MySpaceTV earlier this year.

Users that download the latest version of Autobahn Accelerator will
significantly reduce the download times of music, movies, TV episodes
and other videos from the iTunes store, and improve streaming
performance on MySpaceTV and Veoh.com. Autobahn ensures reliable
streaming, minimizing both the frustration of waiting for videos to
start and re-buffering, even over a wireless network. By installing
the Autobahn Accelerator for Veoh once, users can increase the
streaming rate of videos hosted on Veoh.com as well as videos hosted
by Veoh and embedded on sites throughout the Internet by up to 15
times faster than before.

New York Post Chooses ROO To Launch Online Video and Video Advertising

ROO Group (OTCBB: RGRP), a global leader in online video solutions for
content providers, advertisers and Web sites, today announced that it
has been selected by The New York Post, a News Corporation property
that stands as the fastest growing and fifth largest newspaper in the
nation, to launch online video and video advertising on its Web site,
NYPost.com.

The Post selected ROO for its vast content library and its proven
technology platform, which not only delivers a superlative end-user
experience, but also supports innovative advertising solutions that
can generate new revenue streams for Web publishers.

"The New York Post is one of the most popular media brands in the
world and quite possibly the most distinctive," said Robert Petty,
chairman and CEO of ROO. "ROO's unique video technology and content
library, which is among the largest and broadest in the industry,
ensures that we'll be able to create an online video experience that
will keep visitors on the site longer and keep them coming back for
more."

The ROO platform will allow The Post to create and showcase its own
original content, providing another channel for popular Post
personalities to reach new audiences or strengthen ties with existing
ones.

"We believe ROO is the perfect partner for The Post as we continue to
develop nypost.com and enhance our users' experience online. There is
a great demand for video not only from readers but from advertisers
and ROO will help us meet those desires," said Chris Shaw, Vice
President of Digital Media of The New York Post.

The partnership deepens ROO's ongoing relationship with News
Corporation. ROO currently powers online global video content
distribution and content syndication across many of News Corp's
premier properties including The Times of London, The Sun and The
Australian, and has content syndication partnerships with FOX News
Channel, Fox Affiliates and Sky News. Earlier this year News Corp
signaled its long-term commitment to ROO by becoming a strategic
investor in the company.

Friday, September 21

ON Networks Glues Ads To Video

ON Networks, Inc., a new-media company that offers original episodic
HD shows across the web, TV and mobile announced that many top ad
agencies have joined the firm to partner in testing new forms of
content-based advertising.

Among these agencies are TPN, Carmichael Lynch, Critical Mass and
SicolaMartin. ON differentiates itself in that it attaches
advertisements to shows that travel with the show, across on-line and
off-line networks and devices capturing the largest share of the
targeted markets.

Kip McClanahan, CEO of ON Networks said, "As content continues to move
freely across digital networks and consumers are given more choice in
how, when and where they view videos, content-based advertising will
become the new advertising standard. The ad agencies we're working
with understand this shift and are actively experimenting with new
models to help their clients stay relevant and reach an increasingly
fragmented consumer base."

Advertising offers through ON Networks include "presented by"
sponsorships, interactive in-video surveys, click-to-purchase and
click-to-learn messages, as well as traditional pre- and post-roll
options. Scott Shamberg, senior vice president of marketing and media
at Critical Mass said, "ON Networks' content-centric advertising gives
our clients a powerful and effective way to ensure brand integrity, no
matter where their ads are seen."

ABC And AOL Follow “Free” Trend

With NBC having announced this week that it will be offering free
downloads of the network's popular shows, ABC is beating them to the
punch by offering their shows for free through AOL as of yesterday.
Competitor CBS already shows its programs on AOL.

In May of 2006, ABC claimed the prize for the first major network that
offered full episodes of its popular programs for free online. Now
many of the other networks have been following suit. The focus has
also shifted from providing the content on the network's own site, to
partnering with larger portals that will blanket as vat of an audience
as possible.

AOL and ABC are reported to be sharing the ad revenue, however no
other details of the partnership have been made public at this time.

The use of "geo-targeting" will give all advertisers, big brands and
affiliates a fair chance at the potentially massive visibility .

According to a report in The Wall Street Journal, president of the
Disney-ABC Television Group Anne Sweeney stated that this agreement
marked a new phase in ABC's digital strategy, allowing the shows to
been seen by a larger audience, and still protecting the programs from
piracy in a way that would "appeal to both advertisers and
affiliates."

Thursday, September 20

NBC Goes Direct With Free Ad-Supported Downloads

TO ACCOMMODATE CONSUMERS' VARIED VIEWING habits, NBC now plans to
offer its shows as free, ad-supported downloads. Come October, viewers
should be able to walk away with full-length episodes of prime-time
and late-night programming--ranging from "Heroes" and "30 Rock" to
"Late Night with Conan O'Brien" and "The Tonight Show with Jay Leno."

In another blow to Apple's iTunes, NBC Universal recently decided not
to renew a distribution deal with the download king, because of issues
over packaging and pricing. It is offering programming for sale
through Amazon's Unbox.

NBC, which has let viewers stream its shows online for a year, is
using alternative viewing options to overcome threatening consumer
trends like audience fragmentation and time-shifting.

"We are acknowledging that now, more than ever, viewers want to be in
control of how, when and where they consume their favorite
entertainment," said Vivi Zigler, executive vice president of NBC
Digital Entertainment.

As it stands, NBC Direct has no direct relationship with Hulu.com, the
forthcoming joint venture between NBC Universal and News Corporation.
And while NBC's strategy is clearly to offer as many viewing
alternatives as possible, there is always the threat that the two
services could cannibalize one another's traffic.

In its initial phase, the "NBC Direct" service will only accommodate
PC users running Windows. In the coming months, users of Macs and
various portable devices will be able to download the episodes, which
"expire" a week after they air on TV.

The downloads will come with standard "chapter pre-roll" ads,
according to an NBC spokesman who would not name specific brand
sponsors attached to the service.

NBC eventually plans to offer a free subscription option, which will
allow users to pre-select series to be automatically delivered to
their computers. Future enhancements to "NBC Direct" will include
high-resolution versions of programming made available via a closed
peer-to-peer distribution network.

"Later in 2008, NBC.com plans to offer other business models for
downloaded content in order to provide its users multiple options,"
the NBC spokesman said.

Other series available through "NBC Direct" will include "The Office,"
"Life," "Bionic Woman," and "Friday Night Lights."
Gavin O'Malley can be reached at gavin@mediapost.com

ABC's AOL Pact Marks

From the WSJ:

Walt Disney Co.'s ABC became the latest major network to strike a deal
with AOL allowing its full-length prime-time shows to be available
free on the Time Warner Inc.-owned portal.

ABC shows will be available on AOL starting today, a few weeks before
NBC Universal and News Corp.'s Fox are expected to launch their
jointly owned online venture Hulu, which will make NBC and Fox
programs available on several major Web portals including AOL. CBS
shows are already available on AOL. CBS is a unit of CBS Corp.; NBC is
a unit of General Electric Co.

ABC's deal highlights how the online strategy of the major TV networks
has evolved over the past 18 months, reflecting rapid growth in the
number of people watching online video and increasing advertiser
interest. In May of last year, ABC became the first of the major
networks to offer its most popular shows in full and free on the Web.
Most of the other networks followed.

Initially the networks' focus was to stream shows on their own Web
sites, but media companies have changed tack this year, striking deals
with major portals to ensure that as broad an audience as possible
sees the show. Hulu, for instance, will allow viewers to watch NBC and
Fox shows on AOL, Microsoft Corp.'s MSN, News Corp.'s MySpace and
Yahoo Inc. Hulu is expected to start offering programs in October,
although a precise date hasn't been announced. NBC yesterday announced
an additional online service for its TV shows called NBC Direct,
enabling viewers to download ad-supported episodes free from NBC.com.

ABC's agreement goes into effect days before the networks' fall season
kicks off, ensuring ABC fans will be able to watch some of the
network's new shows, such as "Pushing Daisies," as well as older shows
such as "Grey's Anatomy." The shows will be available one day after
they air on broadcast television, and approximately four episodes of
every show will be available for viewing at one time.

ABC and AOL will share revenue from the arrangement under terms
neither company would discuss.

Anne Sweeney, president of the Disney-ABC Television Group, said the
deal with AOL marks a new phase in the network's digital strategy:
opening up ABC programming to as large an audience as possible, but in
a way that would protect the network's shows from piracy and appeal to
both advertisers and affiliates.

As part of the deal, ABC will use "geo-targeting" to embed one local
ad appropriate for each viewer alongside three national ads in each
hour of programming. The deal is a welcome one for affiliates, which
have feared being on the losing end as networks move their content
online.

"The single most significant impediment to stations being able to take
good advantage of this opportunity has been the inability to target
the viewing that occurs in their markets," said Ray Cole, chairman of
the ABC Television Affiliates Association.

Monday, September 17

SpiralFrog Finally Leaps, Hopes To Be Music To Advertisers' Ears

SPIRALFROG, A CLOSELY WATCHED FREE, ad-supported music download
service in development for the past several years, goes live today in
North America with the mission of saving the music industry, and
making advertisers the heroes in the process. With a new management
team in place, including former Universal McCann honcho George Hayes
as its new vice president of marketing and sales, SpiralFrog hopes to
leap over entrenched music retailers like Apple's iTunes, and
subscription services like Napster and Rhapsody, and to mitigate a sea
of illicit and illegal download services that are currently the bulk
of the marketplace. "Our competitor is piracy," Joe Mohen, chairman
and founder of SpiralFrog said recently during a press briefing in the
penthouse suite of the trendy Night Hotel in New York's Time Square.
Citing research that only one out of every 40 music downloads
currently is paid for, Mohen says SpiralFrog's simple, ad-supported
model offers a solution for all of the music industry's stakeholders -
both content owners and consumers - and provides advertisers with a
way of tapping difficult to reach, savvy young Internet users.

With a target audience of adults 18-34, but an anticipated average
user age in the 20s, SpiralFrog hopes to emerge as an alternative to
illicit music services by offering young music fans an easy,
unobtrusive way of downloading music and video tracks with no risk of
computer viruses, spyware, or potential legal repercussions.

About two-thirds of the advertising revenues SpiralFrog derives from
the sale of advertising on its site are paid directly to the music
business - about a half to record labels and performing artists, and
about 17% to various music rights societies and publishers.

"The advertiser is kind of the hero here," said Hayes, who was a
senior media executive at McCann-Erickson and Universal McCann before
joining SpiralFrog. Coincidentally, Hayes appointment followed the
departure of previous Universal McCann alum Robin Kent as CEO of
SprialFrog early this year. Before joining SpiralFrog, Kent was CEO of
Universal McCann. In April, Kent launched Rebel Digital, a new
advertising consultancy focused on the digital music space that hopes
to find new ways for marketers to integrate their brands with the
digital music marketplace.

"This couldn't have worked three years ago. It couldn't have worked
two years ago," said SpiralFrog's Mohen, referring to the evolution of
the music download industry, the Internet, and the marketing goals of
brand marketers that he claims have come together in a way that makes
the market ripe for ad-supported music services.

The emergence of robust broadband penetration, the transformation of
digital music distribution, and the need for marketers to find
alternative ways of reaching young consumers is the perfect confluence
of factors, he claimed.

The core of SpiralFrog's strategy relies on a simple, clean music
downloading interface that is easy-to-use and is not intrusive to
users. Ads are displayed as they would be on a typical Internet page,
and marketers pay for the privilege of exposing themselves to
consumers while they are researching music of downloading tracks on
SpiralFrog's site. The downloads contain no embedded advertising, or
pre-rolls, and no data tracking mechanisms, but require consumers to
re-license their music by re-visiting SpiralFrog's site at least every
couple of months.

Mel Schrieberg, SpiralFrog's current CEO, said the typical music
consumer spends 70% of his or her time researching songs, and only
about 30% actually downloading music.

SpiralFrog's team declined to disclose advertising costs, but Mohen
said they would be "competitive with traditional media" and Hayes said
they would be based on a "negotiated CPM." In additional to
conventional display ads, Hayes said SpiralFrog hopes to work with
marketers and agencies to develop special advertising formats and
custom targets.

Generally, however, SpiralFrog plans to reach the younger segment of
the music download community, which is the reason for its name, a
made-up term Mohen said was conceived to "appeal to a 19-year-old, but
would turn off a 50-year-old."

Subscription sites like Napster and Rhapsody, he said, are aimed at
the 40-year-old crowd, while market leader iTunes is aimed at
consumers with ample discretionary income. SpiralFrog, by contrast, is
aimed at "people who have more time and less money," said Mohen. "And
they're used to getting it for free," Hayes added.

One thing they won't be getting via SpiralFrog, though, is the ability
to play their downloads on iPods, or to manage them via Apple's iTunes
library. SpiralFrog does not support Apple's formats, though it is
compatible with more than 80 devices that utilize Microsoft's media
rights management system, including most personal computers.

With today's launch, SpiralFrog claims about 800,000 music tracks vs.
iTunes 5 million, but Mohen claims the service will be up to 2 million
free music tracks by the end of the year. Among the labels working
with SpiralFrog are industry leader Universal Music Group, which
includes artists such as U2 and 50 Cent.

Assuming the free, ad-supported music model works, Mohen said
SpiralFrog would move into the television and film download
marketplace with a similar model.

"Certainly, that is one of our strategic directions. This is the
first," he said.

Ultimately, SpiralFrog's success will depend on how quickly consumers
embrace its ad-supported model. Hayes said the company has plans for
consumer marketing, but that the initial rollout would depend on
public relations and word-of-mouth publicity.

"But you won't miss us," he promised.

Mystery Site Mash Indeed Turns Out to Be the Promised Mosh

After some wait, Yahoo has finally released its concept social network
Mosh - which, it turns out, is actually the mystery site Mash.

According to TechCrunch, the service includes modules from Flickr RSS,
Ego Boost, Common Friends, MyMoshLog2, Blog Module (RSS 2.0),
Asteroids, Astrology, PimpMyPet, Hover, Kaleidescope, Guestbook, and
My Stuff. The company will also be opening modules to third party
development.

Users are encouraged to edit one another's pages. Strangely, there is
currently no search feature.

Yahoo Acquires 'Tiny' News Aggregator BuzzTracker

Yahoo has acquired BuzzTracker, a news aggregation site with a
pricetag "somewhere between US$ 2 and US$ 5 million," according to
TechCrunch.

Arrington points out that BuzzTracker is "tiny" compared to similar
sites like TechMeme. However, Yahoo made out better than the US$ 7
million Fox Interactive paid for news aggregation site NewRoo last
year.

Friday, September 14

Videoegg secures $15M in funding

SAN FRANCISCO, CA, September 5, 2007 – VideoEgg. Inc., the leading
video advertising network for online communities, today announced that
it has secured $15 million funding led by Focus Ventures. WPP, August
Capital, and Maveron also contributed to the round.

VideoEgg, which delivers video advertisements across many popular
social-networking web sites, such as Bebo, Hi5, Flixster and Facebook
applications will use the capital to grow its advertising network
business and accelerate product development efforts, including
innovative ad formats, targeting, and the most effective ways to
leverage social networks to build brands.

"The social net continues to take time and attention from traditional
media, especially in youth segments. We think traditional ad networks
are not meeting the needs of brand marketers who are looking for
viable alternatives to TV advertising," said Matt Sanchez, co-founder
and CEO of VideoEgg. "This funding will help us to continue to build
the next generation ad network and make advertising more social,
moving away from creating an impression to securing an actionable
brand engagement."

Demonstrating compelling industry growth, IDC recently stated that
internet advertising is the most important sector of the digital
marketplace and estimates that it will grow to $31.4 billion in 2011.
VideoEgg has been taking advantage of this growth through partnering
with some of the largest social networks, bringing outstanding
consumer reach to its advertising partners, which include Universal
Pictures, Discovery Networks, Electronic Arts, Ford, Nike, Unilever
and Nestlé. The company has demonstrated significant growth and
leadership since launching its ad network earlier this year, including
partnering with several leading social networks and signing on over a
hundred advertisers.

"It's all about the right mix to win in this market, which requires
insight into the needs of marketers with innovative technology and a
focus on rich media," said Steven Bird, general partner of Focus
Ventures. "VideoEgg has made significant traction selling advertising
solutions and is truly seen as an innovator in the ad world."

The strategic investment signals great confidence in VideoEgg's market
leadership and ability to reinvent the ad network around new ideas of
engagement for brands. The company will continue to expand to build
its unique solutions and serve brands across tier one ad markets.