Online Video Ad Network SpotXchange Raises $12 Million

Online video ad network SpotXchange is announcing this morning that it has raised $12 million from H.I.G Growth Partners, in its first round of institutional capital. Proceeds will be used to further build-out its video ad solution and also to expand internationally. SpotXchange is ranked as one of the top 5 video ad networks by comScore and recently launched SpotMarket RTB, a real-time auction-based market where buyers can bid on an impression-by-impression basis.

The SpotXchange news further underscores a sizzling year of financings and M&A for video ad networks. This space is attracting strong investor attention because of the growing recognition that huge online video audiences and ever-improving content is inevitably going to draw more ad dollars to the medium. In addition, online video advertising offers clear benefits over traditional TV advertising such as better targeting and interactivity. Just last week eMarketer forecast 30+%/year annual growth in online video ad spending, driving the category up to $6 billion by 2014. Throughout the year I've noted various innovations in online video ad units and I expect this will continue alongside the online video industry's rapid growth next year.

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Note: SpotXchange is a VideoNuze sponsor.

Categories: Advertising, Deals & Financings

Topics: SpotXchange