VideoEgg has worked with advertisers including EA Games, T-Mobile, Ikea, Universal Films, Pepsi, Lucozade, Nike and EMI with ads appearing on social networking sties such as Facebook, Bebo, Piczo, Tagged and WAYN.
Simon Jones, entertainment media manager at MediaCom, said: "VideoEgg's successful approach stems from its invitation-based advertisements. Its model respects users' preferences while still achieving advertiser objectives."
VideoEgg said that the UK demand for rich media advertising was at least three times greater than in other main European markets.
Jordan Ferguson, managing director, Europe, for VideoEgg, said: "UK media buyers have embraced the format with hugely successful results. Integrating brands with online communities in a way that is non-intrusive and invitation-based has worked really well with the UK audience."
In April, WPP Group acquired a minority stake in VideoEgg. The deal allowed WPP clients to promote their services through a designated ad network, which runs across more than 60 social networking sites including Bebo and AOL.
VideoEgg was founded in 2005 by Yale classmates David Lerman, Matt Sanchez and Kevin Sladek. Based in San Francisco, the company opened its London office in May.