WPP and Interpublic Group have both invested in Spot Runner, the online platform for television ad campaigns.
US TV network CBS and a number of other companies and individuals were also involved in the $40m (£21m) funding round, including Lachlan Murdoch, a former senior executive at News Corp.
Spot Runner lets companies create, plan and buy TV advertising through its website. It covers both cable and broadcast stations across the US and claims to be significantly cheaper than traditional TV ad development – cutting a $2m (£1.05) ad down to as little as $500 (£263), according to co-founder David Waxman.
The investment from some of the world’s largest buyers and sellers of advertising is an endorsement for the company. WPP and IPG both says they plans to use Spot Runner’s Web-based platform to help their clients target ads more effectively at the local level.
Sir Martin Sorrell, chief executive of WPP described the platform as “practical and cost-effective”.
Spot Runner says it will use the funds to expand its services to support online video, video on demand and internet TV.