In another sign of the growing virtual goods economy, in-game advertising start-up SupersonicAds has raised $4.2 million in a first-round funding led by Greylock Israel, an affiliated fund of Greylock Partners. The company's BrandConnect platform lets brands run direct-response campaigns in social games on Facebook by allowing players to earn Facebook Credits (virtual currency) in return for watching videos or taking other actions. That currency in turn can be used to buy virtual goods to progress through game play.
The company, whose clients include Kelloggg's, Hasbro, Intel and Disney, says that 40% of people who viewed a video later visited the marketer's Web site. With the new financing, SupersonicAds plans to expand its business internationally. Greylock Israel partner Yoram Snir will join the company's board in connection with the investment.--Mark Walsh