Tremor Media announced that it has closed a Series B round of funding of $11 million. The round was led by Canaan Partners and Masthead Venture Partners, both of which led Tremor’s prior round of funding. This financing raises the total investment in the company to $19.4 million, including the previous round of $8.4 million that closed in September of 2006.

“Tremor has not only proven its vision for the online video advertising market, but has excelled in executing on that vision,” said Warren Lee, principal at Canaan Partners. “With the video advertising market growing rapidly and expected to surpass $3 billion by 2010, few companies understand the market as well as Tremor Media, which has quickly established itself as an industry and technology leader. Canaan is thrilled to continue its support of Tremor Media as it expands the reach of its innovative platform to a greater number of advertisers and publishers worldwide.”

Tremor Media will use the funds to accelerate strategic growth plans, continue to extend its leadership position in online video advertising, expand its product offering to advertisers and publishers with new video ad formats and publisher tools, and enhance the flexibility of its technology platform to quickly respond to trends in the online video ad industry.

Disclosure: I am the Sr. Director of Marketing and Communications for Tremor Media