SOURCE: Backchannelmedia Inc.

November 16, 2007 08:00 ET

Backchannelmedia Announces $9.5 Million Seed Investment Round Completion

Digital TV Company's Unique Marketing Accountability Model Now Positioned to Benefit From Its Second Round of Funding

BOSTON, MA--(Marketwire - November 16, 2007) - Backchannelmedia Inc., a Boston-based digital television ad serving and response capture company, today announced that it received an investment of $3 million this quarter. This brings to close a first round investment of nearly $10 million over the last two years.

Backchannelmedia's patent pending technologies link the TV and Internet platforms, leveraging existing technologies already deployed in a significant portion of American homes. The Backchannelmedia solution employs the TV remote control which enables a consumer to opt-in and "click through" from TV and access deeper content and advertiser information from the consumer's favorite Internet Web sites. This convenient and intuitive consumer touch point bridges the gap between the TV and Internet worlds through the "tagging" or "bookmarking" of TV content. Once content is tagged, the relevant bookmarks are forwarded to a customized consumer portal on the Internet.

"Backchannelmedia's unique technology will shape the future of TV advertising," said Erwin Ephron, media guru and author. "It links the TV viewer to the Internet and will redefine how ads are exposed to the consumer and how buying decisions are made. Backchannelmedia and the digital transition will redefine the TV advertising platform."

Backchannelmedia's technology will integrate the direct marketing, Internet advertising and television advertising industries into one platform. This technology will enable precision tracking of actual responses to TV ads and content downloads (music and video) from the consumer's remote control to the consumer's personal Web site as opposed to sample viewership measurement techniques used today. By enabling the tracking of actual TV advertisement responses and TV-initiated content downloads from the Internet, Backchannelmedia allows for a quantum jump in marketing accountability. The technology will link sales data and responses directly back to the TV platform.

"A consumer watching a live TV show, or a recorded show from a DVR, will be able to click and transfer information in advertisements or content that appeals to them directly, to their computer from today's digital television platforms. Products can be ordered securely through existing consumer-friendly Internet Web sites with the simple click of the TV remote. Television advertisers are able to know who is responding to their advertising dollars, precisely who is shopping from their Web sites based on television exposure, and immediately improve upon campaigns, thus linking their traditional and digital advertising budgets forever," said Daniel Hassan, chairman and co-CEO of Backchannelmedia. "It will be a win-win for the TV, Internet, ad agencies, advertisers, and especially consumers."

"We will directly link content owners and advertisers to consumers with a simple click of today's remote control. Our patent-pending technology will change the whole paradigm of how advertising dollars are spent with real accountability and also influence how digital media download Web sites will be able to use the digital television platform as a vehicle to get consumers to content where and when they want it," said Michael Kokernak, founder and co-CEO of Backchannelmedia. "Our technology will become a catalyst that will help define accountability as the television platform will be free from the potential for click fraud and media outlets will have a new revenue stream, the click through from TV to the Web."

Backchannelmedia anticipates launching a closed over-the-air trial of the technology through a limited number of digital television stations and content providers during the first and second quarters of 2008.

About Backchannelmedia Inc.

Boston-based Backchannelmedia Inc. was founded in 2000 with the belief that television advertising should become accountable. According to Erwin Ephron, the father of modern media planning, Backchannelmedia offers "an interactive TV model that allows for better targeting and allows for immediate feedback to a TV exposure, making TV advertising a far more attractive selling tool." Backchannelmedia's model is backed by five extensive patent applications, as well as several proprietary Web applications including Backchannelmedia Research, a tool that offers media planners the most comprehensive, free Web-based planning tool available.

Backchannelmedia is currently designing a complete "continuous loop" system that merges direct marketing, Internet advertising, and television advertising industries into one platform driven by automated, optimized targeting and actual television consumer response results. The company is privately funded and its seasoned management and advisor team includes some of the television industry's top talent.

Backchannelmedia anticipates launching a closed over-the air-trial of the technology through a limited number of digital television stations and content providers during the first and second quarters of 2008.

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