Tuesday, September 22, 2009
More Money for Ad Tech: Rubicon Project Raises $9 Million
Start-ups whose business plans are based on selling advertising are having a very hard time raising money. But start-ups that want to make money by helping other people sell advertising? That’s another story.
Today’s example: Rubicon Project, a Los Angeles-based advertising-optimization start-up, has raised a $9 million C round led by Peacock Equity, the joint venture co-owned by GE Capital and GE’s NBC Universal.
Talk to online ad folks for any amount of time and you’ll walk away thinking that behavioral targeting–whereby marketers track and chase Web surfers based on which sites they visit and what they do there–is both old hat and the wave of the future. But I’m still convinced that there’s a very big gap between the way the ad industry views this stuff and the way politicians and average Americans do. For a reminder, head on over to NebuAd’s Web site, which no longer works. That’s because the targeting firm, which once employed 60 people, closed up shop on Friday.
Behavioral targeting–serving up ads to Internet users based on the sites they’ve already visited–has been standard practice on the Web for a couple of years, but not at Google. That changed this morning when the search giant rolled out “interest-based advertising.” Expect to hear from Congressional critics like Rick Boucher very soon.
Dave Morgan made his reputation, and fortune, by building RealMedia and Tacoda–two pioneering Web advertising technology companies. So it’s no surprise to see him launch another ad start-up. But it is surprising to hear about the market he’s targeting: TV ads for TV shows.
