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The deal includes VideoEgg's ad network, The Eggnetwork, which was created to connect advertisers with used generated content and social networks.

VideoEgg powers 20 million streams per day and is partnered with more than 60 social networks such as AOL, Bebo AOL, hi5, myYearbook.com and Tagged, which provide a combined  audience of more than 12 million unique users.

WPP joins existing VideoEgg investors Maveron, August Capital and First Round Capital. The company received a $12 million investment led by Maveron in September last year, in a second round of funding.

The company was founded in 2005 by three Yale classmates and is based in San Francisco and London.

Last month, eType won the contract to sell video advertising on the VideoEgg network in a deal estimated to be worth £4 million a year in advertising revenue.