• by Mark Walsh  @markfwal, August 31, 2007

Riding a wave of interest in digital video advertising, Adspace Networks in August raised a $20 million round of financing led by private equity fund The Walnut Group. AdSpace, a video display network that operates digital displays in 75 malls nationwide, plans to expand to 100 locations by year's end.

A recent Nielsen Media Research study commissioned by AdSpace found that 47 percent of all mall visitors had seen content on the AdSpace network, and 34 percent of them could recall the specific ads that were shown. Teenage mall shoppers watched even more often, with 57 percent of 12- to 17-year-olds viewing the displays.

Along with investors, TV networks are embracing place-based video networks. NBC Universal in July announced deals that will provide NBC News content to in-school video network Channel One and another that will bring network programming to Premier Retail Networks' Supermarket Checkout TV.

CBS has launched a new "Outernet" strategy that distributes CBS-branded content though place-based video networks to promote its shows. And ABC and sister network ESPN are making content available to Gas Station TV, which places video screens atop gas pumps.

Earlier this year, AdSpace, Premier Retail Networks and others formed the Out-of-Home Video Advertising Bureau (OVAB) to help promote the industry on Madison Avenue and set standards and guidelines for advertising in the category.