Mountain View, California — Google has long been making efforts to crack the TV ad market, but the search giant Google has finally spread-out its wings into the TV business by buying a stake in a startup called Invidi Technologies that helps advertisers target cable and satellite viewers with “addressable” ads.
Invidi currently enjoy the financial support of GroupM, the world’s biggest media-buying company, as a major investor. Now the search giant Google leads a second round of funding that comprises of GroupM and Motorola, as well as venture capital firms Menlo Ventures, InterWest Partners, EnerTech Capital, Westbury Equity Partners and BDC Capital, which contributes another $23 million to the company. Total financing for Invidi is now at $85 million, with Google’s investment is estimated to be around $10 million to $15 million, according to reports.
According to Google’s obligation to this new relationship, Shishir Mehrotra, director of product management for Google TV Ads and YouTube Ads, will join Invidi’s board of directors. Besides the funding, in a statement issued on Wednesday, Google and Invidi said the two companies “have decided to work together on projects of mutual interest that will bring value to Invidi’s customers.”
“Invidi Technologies is actively promoting the growth of addressable technologies, which brings more relevance to TV viewership and advertising,” said Mehrotra in that statement. “This should bring Google and Invidi much closer together, considering that they are now supposed to work together on certain unnamed projects,” Mehrotra added.
“Google and GroupM share our vision that addressability will alter television advertising by increasing effectiveness and eliminating wasted reach,” INVIDI CEO David Downey says. “They want to play an active role in shaping this revolution. This financing will speed up our current efforts to deliver the functionality advertisers crave and the ability for operators and networks to increase the value of their advertising inventory. We can deliver this functionality on any platform our customers desire, tailored to their specific network needs.”
This is not the first time Google has attempted to enter into TV advertising. It is is already in the TV selling domain under its TV Ads unit since 2008, selling somewhat remnant inventory for small, digital NBC Universal cable networks, as well as Bloomberg TV and Hallmark Channel.
Furthermore, Google reportedly is working with Sony, Intel and Logitech to develop Web-enabled TVs, set-tops and Blu-ray Disc players that would use the search giant’s Android operating system, originally developed for mobile phones.
But analysts comment that those efforts have been slow-moving, especially with the recent slackness in the media economy. Executives say the move into Invidi would accelerate Google’s entry into the still more lucrative traditional TV advertising market.
Addressable-advertising technology for conventional TV marketers has been boasted as the next holy grail for media. That is because it can target specific viewers with specific targeted messaging, much like Internet ads target Web users.
Invidi develops software solutions for tracking targeted TV ads distributed through cable or satellite set-top boxes. The system functions by relying on viewing data provided by the set-top boxes. This data is then used to distribute targeted ads based on the viewer’s preferences and interests, like what Google is doing with AdSense, in a way. Invidi has been around since 2000 and has raised $85 million so far.
Other addressable-advertising distributors such as Visible World, which can also track viewers in cable “zones” — selected groups through ZIP codes – states that so far Google’s passive investment in Invidi does not appear to pose a threat to their businesses.
Visible World already cooperates with Google for their TV Ads unit. Seth Haberman, chief executive officer of Visible World, stated: “We continue to enjoy our association with Google TV. We are happy that there is continued interest and activity in the addressable advertising space. Today’s news benefits everyone seeking to further the advertising industry.”
Google has a deep interest in the market and the solutions Invidi is providing. Google is seeking to expand its foray into the market with the rumored launch of Android-powered TVs. The platform would empower users to surf the web and access online content on their TV’s or set-top boxes. Presumably, Google could use the same platform to deliver advertising.
Invidi, based in New York City, was founded in 2000.