• by Erik Sass  @eriksass1, July 9, 2007

Ripple TV, a new place-based video advertising network targeting local advertisers, is rapidly expanding its footprint. Today, the company announced a new round of funding as well as a major new retail partnership with Jack-in-the-Box, the popular fast-food chain. The company is also planning to provide free Wi-Fi access to all venues that install its video displays.

The second round of funding, to the tune of $10 million, was led by Draper Fisher Jurvetson and included first-round investor Trinity Ventures. Concurrent with the new funding, John Fisher--co-founder of DFJ--is also joining the Ripple board.

The Jack-in-the-Box deal stands to increase Ripple's distribution network with up to 2,000 new retail locations around the country. Ripple plans to install its video displays in the majority of JIB locations over the next few months. The company has already established video displays at 500 locations throughout Southern California, Arizona, Nevada and Hawaii; company reps say the number is growing by double digits every week.

The network's co-founder and president, Ali Diab, says Ripple TV currently reaches an estimated 10 million consumers a month.

In the Ripple TV system, local stores are essentially able to advertise in other local stores using neighborhood networks. For example, a local hardware store might advertise in the neighborhood muffler repair shop. Ripple's flat-screen video displays are typically installed in retail establishments, such as coffee shops, bookstores, shopping malls and fast-food outlets.

Ripple covers most of the costs of installation, then shares ad revenues with each retail establishment.

The core of the service is an online component, Ripple Ad Center, which allows retailers to design their own ads and target them to as many locations as necessary using targeted metrics. Ad messages are inserted into a content stream drawn from content providers like CBS News, Yahoo and local news, which runs local sports scores, weather and traffic.