Image Space Media raises $1M for in-image ads

Advertising in images could be a hit for publishers and advertisers alike

Image Space Media, an ad network for in-image advertising, has raised $1 million in funding, according to an SEC filing and confirmed by the company. The round is a prelude to the company’s Series B round, slated for 2011.

Listed on the filing are three Image Space Media executives--CEO Jesse Chenar, co-founder and COO Kevin Tung, co-founder and CTO Raymond Chan--in addition to the company’s three board members--Savio Tung, one of the founding partners of global investment firm Investcorp; Scott Johnson, co-founder and managing partner at New Atlantic Ventures; and Michael Gordon, co-founder of Limelight Networks. Chenar also sits on the board.

No new names are listed, meaning that the entire round was raised internally. The startup previously raised a $2.9 million first round led by New Atlantic Ventures.

Founded in 2008 and headquartered in New York City, Image Space Media helps publishers monetize their content with in-image ads. The startup provides an analytics and management tool called PubStop, which allows publishers to track their revenue from targeted ads embedded in images.

Advertisers get access to a “self-serve ad panel” called AdStart, which allows for the creation and customization of ad campaigns as well as monitoring of ROI reports.

The main competitor for Image Space Media is GumGum, which has raised $3.9 million from First Round Capital, GRP Ventures and Crosscut Ventures.