• by Erik Sass  @eriksass1, April 21, 2008

With the place-based video and in-store ad categories booming, Channel M is poised to expand and upgrade its network with a new round of funding from Intel Capital. Together with previous rounds of funding, the new investment brings the company's total funding to $24 million. The Channel M news comes as other players are also expanding or improving their offerings.

The company will use the Intel funding to develop a digital distribution platform for its place-based video network, giving national advertisers greater control and flexibility in their local campaigns. For example, it will allow them to tweak ad creative or the geographic distribution of a campaign after it has launched. It will also provide speedier confirmation that ads ran when and where they were supposed to.

Gustavo Aray, a senior investment manager with Intel Capital, added that the new round of funding will also support "program content development." Channel M creates its own entertainment content with an in-house production staff of 30; it also has a library of about 100,000 pieces of licensed video content.

David Teichner, CEO of Channel M, said the company will also be expanding into a large number of new locations in 2008 through new partnerships and the expansion of existing retail partners.

Currently, the network covers over 20,000 locations, including Macy's and Blockbuster stores. Channel M offers marketers access to television advertising, in-store signage, and product integration services in about 7,500 of those locations. Most of the displays available to advertisers are located in retail venues owned by GameStop, Namco, an arcade owner, and My Gym, as well as nightlife venues served by BuzzTime, an interactive screen game.

Channel M is not the only company that is increasing its capabilities. In March, Reactrix announced a deal with National CineMedia to bring its interactive displays to the lobbies of movie theaters owned by NCM affiliates including AMC, CineMark, and Regal.

Meanwhile, in January, SeeSaw Networks added Ripple TV to its stable of place-based networks. Ripple, which allows local and national advertisers to reach consumers via digital displays in places like coffee shops and bookstores, is also pursuing an aggressive expansion to new locations.