RED HERRING | Kontera’s In-Text Ads Get Cash

RED HERRING | Kontera’s In-Text Ads Get Cash: "Kontera, a startup that’s putting text ads right into the text, said Monday it has raised $7 million in venture funding from Sequoia Capital and Lehman Brothers Venture Partners.

The year-old company, which has offices in San Francisco and Israel, is focused on in-text advertising, in which words in the body of the text on a page are turned into links to contextual ads.

The Kontera deal reflects heavy investor interest in the online advertising space, which Forrester estimates will be worth $26 billion by 2010, and an increasing willingness to explore advertising methods that some consumers may find invasive or annoying. "

How It Works

Kontera offers web site owners a JavaScript tag to include in the code of their pages, allowing it to analyze content in real time and pick out links judged to be the most appropriate keywords for advertising. That means ads are no longer relegated outside the main content of the page; when users hover their mouse over the links, ads appear.


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