Digital Dealmakers

TVWeek, August 3, 2008

Mike Shehan, CEO of SpotXchange

The player: Mike Shehan, CEO of SpotXchange

The play: SpotXchange is an online video advertising network that brokers deals for ads against online video content. Ads can be pre-rolls, overlays, banners and pre-game ads in which a video advertisement plays before a casual game starts. SpotXchange is the sister company to Booyah Networks, which builds technologies and provides solutions for sponsored search.

The pitch: Because of parent company Booyah’s work in search, SpotXchange can allow advertisers to tweak their campaigns on the fly based on real-time Web results, much like advertisers can do with search campaigns. “We provide a lot of transparency to allow advertisers to see exactly where their ads are being placed. They can load and launch campaigns within minutes as opposed to 30 days,” Mr. Shehan said. “The biggest thing our advertisers appreciate is the ability to optimize campaigns based on performance, just like you would with search.” Advertisers can pick and choose the sites and inventory they want.

In the mix: SpotXchange reaches 84 million people per month across its network of publishers, including Blinkx.com, ClipSyndicate.com, Pando.com, Videojug.com, Voxant.com and Vuze.com. Advertisers have included big brands like the U.S. Army and Ford, agencies like Universal McCann and direct-response marketers like Netflix. SpotXchange also works with local advertisers such as attorneys, retailers and restaurants because SpotXchange can target by city. “It’s a powerful marketing tool because it does drive phone calls and leads to them. For every local video ad, we overlay with a unique phone tracking number,” he said.

The backstory: Mr. Shehan founded parent company Booyah in 2001 with proceeds from selling his house. That company is now profitable.

The money guys: SpotXchange was funded by Booyah Networks at launch in 2006 with $6 million. The company also has raised an undisclosed amount of strategic investment money. SpotXchange makes money from selling ads and expects to be profitable in 12 to 24 months.

The pros: Online video advertising is a fast-growing business and revenue should rise from $471 million last year to $7.2 billion in 2012, according to Forrester Research.

The cons: Competition is stiff from online video ad networks like Tremor Media and Broadband Enterprises.

Background: Mr. Shehan was born in Westchester, Pa., and grew up in Baltimore. He graduated with a degree in biology from Vanderbilt University. Before founding Booyah in 2001, he was CEO of an image search technology firm and founded e-commerce company Logex. He lives in the Denver area with his wife and four children.

Who knew? In 2001 Mr. Shehan and his wife sold their dream home in Boulder, Colo., to fund Booyah Networks. Three months after they moved the house was featured in Better Homes & Gardens, with the couple in front of the home on the cover.

Posted on August 3, 2008 8:50 PM | Permalink