Guildford, Surrey-based MirriAd, which uses its technology to digitally add product placement in movies, video, games and DVDs, has raised £1.5 million through a grant from the UK government’s Creative Industries Innovation Award via the Technology Strategy Board. The company, which has so far been working with movie studios to embed brands in scenes in post-production, is now working with TelecityGroup and Apical to develop Videosense, a tool that adapts its embedding technology for use in all videos, including web vids.

SEE ALSO: MirriAd Raises £2 Million For Embedded Ads

The technology automatically identifies spots in videos that can be used to insert branding and also includes an online marketplace for advertisers to buy the spots. Videosense isn’t yet in public use but the three partners say they want to test it for live online video streaming. MirriAd’s existing technology has been used by US comCast channels and by Endemol in Indian TV MirriAd got a $£2 million first VC round in September 2007 and an equal second round in October 2008. Release (via Reg).