ScanScout, an online video ad provider, has raised $8.5 million in Series B funding. IDB Investments of Singapore closed the round. Previous investors include General Catalyst Partners, Time Warner, First Round Capital, Baseline Ventures, and Ron Conway, according to its Website.
The company offers automated video advertisements through pre-roll and overlays. Basically those quick ads you see before a video starts and that eventually pop up throughout an online video. It recently launched a new technology called, “Super Pre-Roll,” which basically makes pre-rolls more interactive and clickable. ScanScout believes this will make advertisements more compelling for the viewer.
Investment in a video ad provider like ScanScout makes sense. As popularity of online video consumption continues to grow ever year, ad revenues are projected to reach $4 billion by 2013, according to reports by eMarketer. It’s also said 85 percent of U.S. Internet users will be interacting with online video in one way or another.
The Cambridge, Mass.-based startup said its seeing tremendous growth. In July of 2009 the company was ranked by comScore as the largest online video ad network. It has around 600 premium publishers including RealNetworks, Fox News and Broadway.tv.
And now the company is looking to expand globally. ScanScout said the funds will help aid growth in the US as well as establish new developments in the Asian market. It recently opened its new Asian headquarters in Singapore.
