iWeb, a developer of technology that allows Internet service providers to subsidize free Internet access with e-commerce services and advertising, announced Thursday that it has secured a $3 million second round of financing. The round was led by marketing and communications firm Young & Rubicam.
iWeb’s first product, iNotes, uses patent-pending software that allows ISPs to deliver service and advertising directly to subscribers’ screens whenever they are online. The process does not require the download or installation of software.
iWeb says that iNotes will not slow down Web surfing, even though the advertising offered will include rich multimedia content. iWeb’s technology will use idle periods in the user’s communication line to download messages. iWeb is betting that individuals will put up with this information in exchange for cheap or even free Internet access.
“The advent of free Internet access in Europe and the United States is creating intense pressure on existing ISPs to find new business models to generate additional revenue,” said Kobi Samboursky, CEO of iWeb. “iNotes provides ISPs with an attractive and easy-to-deploy solution that will allow them to tap previously unavailable Web advertising and e-commerce revenue streams, without changing their major business focus.”
Benefits For Advertisers
ISPs that use iNotes will be able to give Web advertisers highly targeted promotional opportunities. iWeb says advertisers will benefit from user profiling based on geographic and demographic date, 100 percent guaranteed advertising exposure, and accurate reporting on clickthroughs and page-view duration. In addition to serving large companies, IWeb says iNotes will allow ISPs to created targeted advertising for small, local businesses.
“Why should advertisers rely on Internet banner (advertising) when there is a solution that will target advertising at individuals wherever they are on the Internet?” said Bruce Benson, executive vice president for corporate strategy and technology at Young and Rubicam. “iWeb is the first to market with such a solution at a time when online advertising is poised for tremendous growth”
About iWeb Ltd.
Founded in 1998, iWeb is a privately held company with offices in New York City, Silicon Valley, London and Israel.
About Young and Rubicam
Young & Rubicam offers integrated services in advertising, direct marketing and sales promotion, perception management and public relations, branding identity consultation and design services and healthcare communications.