Podcasting Ad Co. Podbridge Reborn And Raising Series B
By John Letzing, 2/16/2006
Podbridge Inc., a maker of technology used to place targeted advertisements alongside podcasts, has re-launched itself and plans to raise a Series B round of venture funding worth $10 to $12 million, according to Chief Executive Murgesh Navar.
Founded in 2002, Podbridge was previously known as AudioFeast Inc. and provided podcast subscription services. The company raised $10 million in angel and VC funding in 2004 from investors including Mayfield and WorldView Technology Partners, according to Navar. Navar said that when AudioFeast folded in June 2005, "the majority of angel investors pulled out," while Mayfield and WorldView remained committed.
Navar said that Mayfield and Worldview will now take part in Podbridge's Series B round, along with another unidentified firm. Navar estimated that the round will close "In the April, May or June time frame" of 2006.
Podbridge is setting itself up as a network that media companies can use to gain revenue from targeted advertising attached to their podcasts. A user interested in a podcast on a Podbridge customer's Web site can click on their selection, then will sign in through a Podbridge portal that collects their demographic data. Podbridge then places targeted ads into the podcast before it lands in the user's digital music player.
Navar said that Podbridge now has customers including Sportsbyline, a sports news Web site, and Military.com, a portal used by members of the U.S. military. The company's business model is based on sharing revenue paid by advertisers to these content owners. Navar said that Podbridge also has a version for video advertisements, which is now "in beta testing."
"We're focused on bringing major media companies into podcasting profitability," Navar said. He added that while the company's Series A round of funding has been sufficient to get started, "We need about $10 to $12 million to scale the business."
Navar said that AudioFeast ran into "competitive headwinds" prior to its demise last June, though it was developing some technology that is now deployed by Podbridge. Navar said that AudioFeast encountered problems in attempting to license podcast content and charge subscription rates of around $5 per month. He said that Podbridge's service, on the other hand, is "free to content providers and free to listeners."
Various other venture-backed companies are dabbling in inserting brief ads into podcasts, including Melodeo Inc., which offers podcast service via mobile phone, and Evolution Artists Inc.'s GCast, which makes software both for making and receiving podcasts on a phone. No one, however, has yet established solid revenue based on the podcasting ad model.
Navar added that he thinks advertisers will warm to the idea of having specific demographic data on users, such as age and geographic location, and will likely "pay a premium" for it. The company referred in a release to published estimates from Forrester Research predicting that by 2010, 12.3 million households will be receiving podcasts.