has raised $11 million from existing investors Sequoia Capital, Genesis Partners, and T-Venture (Deutsche Telecom), and new investor Vintage Investment Partners. Altogether, the company has raised $27.6 million. Innovid was founded in 2007 by Zvika Netter (CEO), Tal Chalozin (CTO) and Zack Zigdon (MD International). The company is attempting to change the video advertising model by making advertisements interactive. Its technology has already been used in campaigns by brands such as Coca Cola, Toyota, Samsung, Gillette, Microsoft, and leading Hollywood film studios. The company said that the funding would be used to continue its rapid global growth in video ad serving across PC, mobile and tablet, as well as expand into new screens including gaming consoles, connected TV, video on demand and broadcast TV.
Innovid's product in effect creates a relationship between viewer and advertisement, by adding interactive menus offering relevant information. So an advertisement for a new film can provide information about screening times, the plot, actors, and so forth, or an advertisement for a new product can provide a discount coupon.
Netter told "Globes" today that the aim this year was to offer interactive advertisements on television screens. "There are many companies today, such as Samsung, LG, Google, Netflix, Hulu, Boxee and others that link up the television screen in the home to the Internet. The idea is to show that there is no material difference between a television connected to the Internet and a computer connected to the Internet. Both have an IP address, even if one is a 50-inch screen and the other is a 20-inch screen." Netter explains that by putting interactive advertisements into Internet broadcasts on television, it is possible to create targeting of the viewer, and to know who he is and what interests him. "This is in contrast to Channel 2, where a brand places an advertisement for viewers of "A Star is Born" without really knowing who is sitting in front of the screen," he adds.
Innovid's revenue grew by 450% in 2012 in comparison with 2011. It works with Roku, which produces special streamers for television, and with Sony for its video console
"Innovid's swift worldwide growth is indicative of the advertising industry's need for a platform that advances TV advertising to the next stage," said Doug Leone, General Partner of Sequoia Capital, "Leveraging its proven technology and experienced team, we are confident Innovid will fulfill its vision to revolutionize the world of TV advertising."
Published by Globes [online], Israel business news - www.globes-online.com - on March 6, 2013
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