ADOTAS – Apparently industry self-regulation is worth sinking money into — private equity firm Warburg Pincus led a $9.5 million round of funding for Better Advertising, which also included participation from all of the executive crew.
The investment will go toward continued development of the company as well as breaking ground in Europe. Interestingly, BA was “incubated” within Warburg Pincus during CEO founder Scott Meyer’s tenure as Entrepreneur in Residence.
BA’s “Forward I” stamp on a display ad proves it complies with industry guidelines on behavioral advertising while providing consumers with a link to learn more about targeting practices as well as controls over the data used. In addition, BA offers an assurance platform that ensures an advertising company is following its own rules. The cost is reportedly a few cents on every thousand views.
The company was selected by the Digital Advertising Alliance — which includes the Interactive Advertising Bureau and the Direct Marketing Association — to power its interest-based advertising self regulatory program and has been adopted by power brokers such as Google.
Considering that the Federal Trade Commission is likely to come out in favor of industry self-regulation in terms of behavioral targeting, Better Advertising seems ahead of the pack in this category, especially since the Forward I is the only solution to be widely implemented in display ads.