TargetSpot plans to use the funds raised to fuel investments in its advertising technology and expand its network.

“TargetSpot has been a pioneer in developing the digital audio advertising market. Its early investments created the largest network of its kind, incorporating many of the leading online radio groups and pureplay music streaming companies,” said Fred Wilson, managing partner at Union Square Ventures and TargetSpot board member. “The funding will help us accelerate TargetSpot’s growth trajectory by expanding our advertising product lineup on both the web and mobile platforms.”

TargetSpot plans to boost its investments in targeting applications, analytics and multi-platform consumer engagement. The company wants to make 2011 the year that improves advertiser precision and engagement, making advertisers impact greater across its digital network.

“We have seen a rapid transition of online audio advertising into an essential component of the media buy for the largest national and regional brands,” said Jeffrey Glass, managing director at Bain Capital Ventures and TargetSpot board member. “TargetSpot’s growth this past year has dramatically outpaced the market and by investing more capital, we will be able to deepen our national footprint to best serve our rapidly growing advertiser base.”

TargetSpot last raised its Series B round of funding in March 2008, receiving $8.6 million.

There is a clear trend towards a growth in online radio, with consumers moving away from traditional media. That provides a huge new opportunity for digital advertisers and it’s a trend that TargetSpot wants to be on the forefront of.