AdRise, a US-based connected TV advertising and app development company, has raised $2 million in a round led by Foundation capital. AdRise have an interesting business model – they build clients the app for free and will repurpose it so it’s compatible across different devices, and in exchange your inventory must be included in their ad network. While not being able to sell your inventory directly might sound off-putting at first, the model works it’s currently very difficult to get the kind of scale on connected TV that would appeal to advertisers.
As things stand, the connected TV advertising market is still burdened by audience fragmentation. And audiences aren’t just fragmented along apps either. Apps have to be repurposed and often redesigned for each of the device manufacturers’ walled gardens (although we hear that common standards based around CE-HTML are helping this area). All of which means that direct sales of advertising on connected TV are still far rarer than they should be, unless of course the inventory is being being bundled with inventory from other platforms.
Along with the funding, Foundation Capital’s Ashmeet Sidana, who also sits on the board of video ad company FreeWheel — will also join AdRise’s board of directors.