Deal Watch: Making a splash with interactive ads

| Print |  Email
Thursday, May 01, 2008

splashcast.png

THEY’RE THE DEMOGRAPHIC that makes advertisers drool: the 13- to 29-year-old online audience. Right now they’re spending most of their online time on social networking websites like MySpace or Facebook — not on traditional websites. Too bad for advertisers, since usual methods like banner ads aren’t very hot in that environment.

Last year SplashCast launched its solution: socially interactive ads. So far it’s a hit. Its clients range from Sony/BMG and National Public Radio to MTV and the Hillary Clinton campaign.

“We don’t ask audiences to change their habits and go to a destination site like ESPN. That’s not how they spend their time anymore,” says company founder and CEO Michael Berkley.

In March, 14-month-old SplashCast announced it had raised $2.7 million to complete a $4 million funding round led by Mark Bayliss, an investor and senior executive for one of Australia’s largest media companies, Fairfax Holdings. Bayliss now sits on the company board; he was brought in by board member and former Nike exec Charlie Baker.

Think of SplashCast as an interactive television channel where viewers also play games or shop or listen to songs, and advertisers change content when needed. But here’s the moneymaker: Viewers can send any video to their friends so they can put them on their own MySpace or Facebook page. That’s how the advertising is spread, via social networks. Ads aren’t just watched, they’re played with. And they’re played with because they come from friends, says Berkley.

Is it working? The company says those videos are viewed 1.3 million times each day. Every month 8.5 million individual users interact with the videos.

Berkley has two main goals for the funding, much of which came from angel investors in the Pacific Northwest: grow the company from its current eight employees to around 20, and create an aggressive marketing plan.           

ABRAHAM HYATT

MERGERS AND ACQUISITIONS
ANNOUNCED EXP. CLOSE BUYER / PARENT (HQ) SELLER (HQ) / PARENT PRICE (TERMS)
13-Mar Q2 ‘08 AVI BioPharma (Portland) Ercole Biotech (NC) $8.9M (stock + assumed debt)
24-Mar ND L-1 Identity Solutions (CT) ID Systems business/Digimarc (Beaverton) $250M (cash + stock)
24-Mar Q2 ‘08 Crisp (UK) IMSafer (Beaverton) ND
26-Mar Q1 ‘08 Rim Semiconductor (Portland) Multi-Carrier Communications/ Utek (FL) ND
31-Mar Q2 ‘08 Bullivant Houser Bailey PC (Portland) Jacobs & Ferraro (CA) ND
31-Mar Q2 ‘08 Greenbrier Companies (Lake Oswego) American Allied Railway Equipment Company (IL) $83M (cash)
REAL ESTATE TRANSACTIONS
ANNOUNCED BUYER / PARENT (HQ) REAL ESTATE (LOCATION) / SELLER (HQ) PRICE
11-Mar Pacific Northwest College of Art Federal Building (Portland) / U.S. Government ND
11-Mar Urban Renaissance Group; Great Point Investors Morgan Building (Portland) / RREEF; LA County Employees Retirement Association $27.55M
19-Mar KBS Realty Advisors Evergreen Park industrial campus (Hillsboro) / UBS Realty Investors $16.15M
19-Mar Maple Properties Berry Hill Shopping Center (Oregon City) / R&B Kiggins $8.6M
24-Mar NBS Real Estate Capital (Portland); Su Casa Properties (CA) apartment complex (UT) / ND $4.88M
24-Mar MCGD industrial building (Clackamas) / Indal Corporation $1.92M
24-Mar PM Industries industrial property (Beaverton) / Tri County Warehouse $3.2M
24-Mar Schonert Properties industrial land (Clackamas) / Clackamas Commons III $1.77M
26-Mar Unico Properties Rivercrest Meadows Apts. (Tualatin) / Simpson Housing $38.7M
31-Mar JB Matteson (CA) Harrison Tower Apartments (Portland) / Portland Center Investors $45M
31-Mar Integrita E Perseveranza industrial building (Beaverton) / Tri-County Moving and Storage $3.2M
31-Mar Commerce Investment King Tower Apartments (Portland) / Harsch Investment Properties $26M
31-Mar Pringle Construction Durham Park Apartments (Tigard) / 6 investment groups $24.8M
CAPITAL RAISING
ANNOUNCED COMPANY (HQ) / LEADERSHIP INVESTOR (HQ) PRICE (TERMS)
11-Mar Pulse Health (Portland) / Chris Marsh, CEO Undisclosed angel investors (CA, WA, OR) $2.15M (Series A)
13-Mar Nike (Beaverton) / Mark Parker, president and CEO Undisclosed Investor (MO) $50M (debt)
14-Mar Davenport Power (Bend & CT) / Hiram A. Bingham, chairman & CEO US Renewables Group; Riverstone Holdings (NY) ND
19-Mar Oregon State University (Corvallis) / Dr. Edward Ray, president anonymous donor $5M (gift)
20-Mar SplashCast (Portland) / Michael Berkley, CEO and founder Emergent (Portland); Mark Bayliss (Australia) $2.7M (Series A)
20-Mar Genesis Financial Solutions (Portland) / Irving Levin, CEO The Edgewater Funds ND (equity)
27-Mar Iovation (Portland) / Greg Pierson, CEO SAP Ventures and European Founders Fund $5M (Series A)

List researched by Mark Druskoff

Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 

More Articles

Fueling Up for the Climb

July/August 2015
Friday, July 10, 2015
BY GREGG MORRIS

Rita Hansen aims to scale natural gas vehicle innovation.


Read more...

Modern design defines new Portland indoor market

The Latest
Thursday, June 25, 2015
thumbSnøhetta JBPM exterior www mir noBY KIM MOORE | RESEARCH EDITOR

An international architecture firm known for its design of the National September 11 Memorial Museum Pavilion in New York unveiled its plan this week for a modern indoor/outdoor food market at the foot of the Morrison Bridge in downtown Portland.


Read more...

Reader Input: Rx for Health Care

July/August 2015
Wednesday, July 15, 2015

We asked readers how Obamacare has impacted their business.


Read more...

The Backstory: Portland Youth Builders

The Latest
Wednesday, June 03, 2015
blog002 1BY JASON E. KAPLAN | STAFF PHOTOGRAPHER

As part of our green workplaces story, Oregon Business checked out a community service project undertaken by Portland Youth Builders, a nonprofit alternative high school. In partnership with Whole Foods, PYB built garden boxes for a Home Forward  housing site. Home Forward is a government agency that provides housing for low income residents and people with disabilities.


Read more...

Reader Input: Fair Play

May 2015
Wednesday, July 15, 2015

Former Governor John Kitzhaber's resignation in February prompted some soul searching in this state about ethical behavior in industry and government.


Read more...

5 things to know about veterans in the workforce

The Latest
Wednesday, July 01, 2015
070215-vetsthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

There are more than 10 million former military members working in the United States.


Read more...

Apartment Mania

Guest Blog
Thursday, June 18, 2015
4805983977 11466ce1d6 zBY BRAD HOULE | CFA

While most categories of commercial real estate have performed well, one of the most robust has been apartment buildings.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS