The Carlyle Group and H.I.G. Ventures announced they co-led a 20 million investment in REVShare, an exchange that allows advertisers to bid for television time on a Cost-per-Action (CPA) basis (akin to the Cost-per-Click method of web advertisers), versus the traditional method of charging based on projected audience size.
REVShare utilizes a proprietary bidding system whereby advertisers specify a price they are willing to pay per response (i.e. when someone is prompted to call a toll-free number or visit a website) and the air time is allocated according to media ROI. Under this system, stations are able to sell their inventory without revealing the effective rate of their ads, and advertisers are able to pay rates that are determined by a combination of market forces and response to their ads.
REVShare has relationships with more than 1,500 English and Spanish local market television stations, cable systems, syndicators and networks that are willing to provide television time on a performance basis.