Actually, although BoomTown is staying right around the corner from Buckingham Palace in Mayfair, I am in London on my way to the PICNIC conference in Amsterdam later this week, where I will be interviewing some digital leaders onstage.

We’re still working on rolling out a version of our D: All Things Digital conference in Europe next fall, so it’s important to get a sense of what is going on here in the digital sector and, of course, what is not.

I was here in summer 2007 and also last fall. This trip, I am slated to visit Mike Volpi of Joost to talk about what’s going on at that much-hyped online video site, which is in the midst of rejiggering itself after a rocky start.

I will also be paying a call on the fine folks over at the Guardian, including its PDA digital content blogger Jemima Kiss.

The Guardian Media Group, the newspaper’s parent company, is doing some really fast-forward things in the digital arena, including the recent purchase of the paidContent new media news site.

And tomorrow, I will be having yet another grilled kipper breakfast at the very tony Wolseley restaurant with Index Ventures’ Danny Rimer to talk about the start-up market here.

Videos, of course, to come.

On one of my many trips to Los Angeles (what can I say? I like to hang where LoRo* hangs), I dropped in to see Nick Grouf of Spot Runner.

As many might know, Spot Runner is an online-offline ad agency play that has gotten big funding and even bigger hype of late.

We’ll see how that goes. But Spot Runner actually seems to be tackling an underserved (and unexciting) market of local and national clients in need of cheap online ad solutions married to more traditional marketing venues to boost revenue.

Here’s my video interview with Grouf at Spot Runner’s offices on Wilshire Boulevard:

I met Grouf many years ago when he–along with Spot Runner partner David Waxman–founded PeoplePC and Firefly Networks.

Grouf sold the struggling PeoplePC–which hawked computers bundled with an online service–to Earthlink (ELNK) in 2002 for $10 million and assumption of $35 million in liabilities, in a Web 1.0 meltdown deal that followed a disastrous IPO.

He then started working for the Presidential campaign of Sen. John Kerry, helping figure out how to best and most cheaply place critical television ads–crunching all sorts of data about lots and lots of neighborhoods and towns and cities nationwide to figure it out.

What Grouf figured out, though, was that a system for doing so was nonexistent.

That experience turned into Spot Runner, which is essentially a do-it-yourself model that tries to iron out inefficiencies in the buying and selling of advertising and bridge the gap between the traditional and online ad markets.

Offering cheap ad templates, clients can make and place low-cost television and radio ads for small and national businesses, as well as political campaigns, and get analytics about the impact of the ads. Some ads cost as low as $500.

Spot Runner got a pile of cash to try to do that better, recently nabbing $51 million in funding to add to the $60 million already raised.

Investors include international media giants Daily Mail and General Trust (DMGT.L) and Grupo Televisa (TV), investment company Legg Mason Capital Management (LM) and luxury conglomerate Groupe Arnault/LVMH (MC.PA).

Spot Runner’s previous investors are Allen & Company, Battery Ventures, Comerica Bank (CMA), Lachlan Murdoch, Vivi Nevo, Capital Research and Management, CBS (CBS), Index Ventures, Interpublic Group (IPG), Tudor Investment Corporation and WPP.

Its board includes Index’s Danny Rimer and former AOL exec Bob Pittman.

All that money has given Spot Runner an eye-popping valuation upwards of $500 million.

This is its biggest burden, I think, setting expectations very high for what is still a little start-up.

And while there are rumors of both Microsoft and Google, as well as Comcast, being interested in acquiring the company, Grouf dismisses the speculation.

He says Spot Runner is more intent on using the money raised to buy companies and improve its offerings.

For example, it recently bought Weblistic, a local search listings creator, and hired former Microsoft exec Joanne Bradford.

Bradford, who was a VP and chief media officer of MSN Media Network, is executive vice president of National Marketing Services at Spot Runner, focusing on getting national advertisers to also think small and targeted.

Who knows whether the company will be able to overcome its hype, but time (and money) will tell.

(*And a free D6 bag for anyone who correctly identifies who I am referring to here, either by sending in a comment or an email to me at kara@allthingsd.com.)

Spot Runner, the online ad agency, delivered yet another Web 2.0 miracle today, raising another $51 million in funding from a diverse group of investors.

Among other services, Spot Runner makes and places low-cost television and radio ads for small businesses and is trying to bridge the gap between the traditional and online ad market.

In this round, those stepping up to invest in the Los Angeles-based start-up include international media giants Daily Mail and General Trust (DMGT.L) and Grupo Televisa (TV), investment company Legg Mason Capital Management (LM) and, curiously, luxury conglomerate Groupe Arnault/LVMH (MC.PA).

This group, along with existing investors, forked over the $51 million to add to the $60 million already raised. This appears to give it a massive valuation of upward of $500 million.

Well, at least in the land of Web 2.0 it does. In the real world, it still remains to be seen. But that has not stopped the nonstop investment party of late for Web 2.0 start-ups.

Web-based instant messaging company Meebo recently raised another $25 million at a reported $250 million valuation, while widgeteer Slide got $50 million for a $550 million valuation.

Of course, the champ of them all has been the social-networking site Facebook, which now has a $15 billion valuation.

Wheeeeeeeeeeeeeee! Or maybe not so much, but obviously no one in Silicon Valley is listening to BoomTown at this Kool-Aid carnival.

Spot Runner’s previous investors are: Allen & Company, Battery Ventures, Comerica Bank (CMA), Lachlan Murdoch, Vivi Nevo, Capital Research and Management, CBS (CBS), Index Ventures, Interpublic Group, Tudor Investment Corporation and WPP.

So far, this group has invested $60 million in Spot Runner. Its board includes Index’s Danny Rimer and former AOL exec Bob Pittman.

“We want to use the investment to make a real penetration in the market,” said Nick Grouf, chairman and CEO of Spot Runner. “We want to expand both organically and through acquisitions, as well as expand our staff, and these strategic investors will help us do that.”

Spot Runner has already been doing that. For example, it recently bought Weblistic, a local search listings creator, and hired former Microsoft exec Joanne Bradford.

The Daily Mail is a large media company based in the United Kingdom, with newspapers, online and radio assets, while Grupo Televisa is one of the largest media conglomerates in the Spanish-speaking world.

Groupe Arnault/LVMH owns some of the world’s toniest brands, including Moët & Chandon, Hennessy, Louis Vuitton and Givenchy.

Grouf, again along with partner David Waxman, also previously founded PeoplePC and Firefly Networks.

In the spirit of the funding, here’s one of my favorite Kool-Aid commercials:

For some reason, though, we have still not gotten our invite to Buckingham Palace to discuss the wireless access and show off the iPhone to the royals.

Nonetheless, we press ahead and will be out and about through Monday to see a little of what’s cooking in the digital space here.

London and all of England are quite the users of online technologies–for example, London itself just became the top geographic network on Facebook, with 810,000 sign-ups.

While here, I will be meeting with Reuters head Tom Glocer; Yahoo’s new Europe honcho, Toby Coppel; the people behind the Bebo social network (the service is very popular in the United Kingdom); Index Ventures’ Danny Rimer; and a few cool start-ups. A planned meeting with the Joost folks got canceled sadly, but somehow I will recover.

Look for my tech travel posts and videos in the days ahead and, until then, try to identify this quote and from where from a famous Englishman, and which seems particularly apt for the entrepreneurs of tech:

“Our doubts are traitors, and make us lose the good we oft might win, by fearing to attempt.”

The group, which includes former Silicon Valley player Danny Rimer, whom I interviewed in this post yesterday, threw a schmoozy gathering for its tech partners and some of the start-ups it is investing in and the press at the Four Seasons in Palo Alto.

Thus, I decided to play make-an-elevator-pitch with some of the entrepreneurs of the start-ups there, seen in this video. I also talked to Danny Rimer’s two older brothers, also at Index, and included in the video my chat with Neil Rimer, who talked about the difference between doing tech in Europe and in Silicon Valley.

Now London-based, the former SV investment bank analyst and venture capitalist is here for a lunch hosted today by Index Ventures, the juice behind Joost and also a previous little start-up you might recall called Skype.

“From Index Ventures perspective, the world is much smaller and flatter now,” said the invite to the event, which will feature the entire technology investment team of the venture firm, which operates out of both London, Jersey and Geneva.

“Five years ago,” the invite continued, “it felt Herculean to have a small, globally focused business and, today, it is commonplace.”

That, in fact, is the one thing that has struck the 36-year-old Rimer as the difference from when he left California in 2002. He worked here first at Hambrecht & Quist covering then-nascent Web companies (and where I first met him) and then as a fledgling VC at the short-lived Barksdale Group, whose fortunes were buffeted by the first dot-com bust.

“If anything has changed, it is that the Web is really now completely a global phenomenon, which is hard to sometimes see while you are in the middle of Silicon Valley,” said Rimer. “I think I have the best job taking the Silicon Valley model and applying it in totally underpenetrated geographies.”

Rimer thinks that every digital company has to be building on global opportunities now. “You need to be aware what is happening in Bangalore, Estonia, Tel Aviv,” he said.

That’s what brought him back to Europe and to a firm that was started by his brother and another VC in 1996, and which also includes yet another Rimer brother. The various Index funds now have about $1.5 billion under management.

That’s a good size to be flexible, said Rimer, while also allowing it to make big bets and, in tech, often in open-source companies.

It has paid off well in the case of Index’s investment in Skype, the Internet phone company that was sold to eBay in the fall of 2005 for $2.6 billion in cash and stock. It also recently scored when its Last.fm social-music network was sold to CBS for $280 million in cash.

Other Index investments include MySQL, the open-source database, and open-source business-intelligence company Pentaho.

And today, Index announced that it was leading a $5 million financing of London’s Openads, the developer of a free, open-source ad-serving system, a competitor to companies like DoubleClick. While Openads was started as part of Britain’s digital-ad business Unanimis, it will now stand alone.

But Index’s most recent notable bet has been its lead role in handing over $45 million to Joost, along with Silicon Valley’s famed Sequoia Capital (backers of Yahoo, YouTube and, of course, Google), as well as CBS, Viacom and the wealthy Hong Kong investor Li Ka-shing.

The much-hyped video online service was created by Skype’s Janus Friis and Niklas Zennström, who are also Index advisers and investors. In further insider baseball, Joost’s new CEO, Mike Volpi, spearheaded a Cisco investment in Index when he was there as the networking company’s top mergers-and-acquisitions exec. Volpi has been on Index’s advisory board, too.

Joost aims to do for professionally created content from media companies big and small what YouTube did for user-generated video. I like this on-demand idea, but I am a bit cool on Joost so far, finding its beta claustrophobic, noisy and underwhelming. Also, I seldom go back in the way I do to other video sites.

Rimer, of course, disagrees. “We are essentially creating a new kind of network, although there is a lot of work to be done to make it a compelling and diverse experience,” he said. “It will be interesting to see its adoption and use over time.”

Indeed, although you will not see Joost making any of its own content–relying instead on Hollywood connections. Joost is, in fact, throwing a party in Los Angeles next week to show the flag to that town’s players.

After becoming terrified by the huge growth of YouTube, with its nest of copyright issues, Joost could be seen as a Hollywood executive’s salvation.

“Making great content is a whole different set of skills than we have and we appreciate that,” said Rimer, who now has to become as comfortable in the Valley of Burbank as he has been in Silicon Valley. “But we will definitely be doing a lot of hugging down there.”

While he was impossibly young then, looking like a 12-year-old except for the sideburns, Smith is still the same jumping bean of a person he always has been, all frenetic energy and rat-a-tat-tat patter.

The Journal piece discusses Smith’s strategy of placing bets all over the Web by putting CBS content just about everywhere, across a wide range of sites. “CSI” on MSN! “CSI” on Bebo! “CSI” on AOL! “CSI” in your glove compartment! (It could happen.)

This approach of Internet promiscuity is in contrast to other big media companies, many of which think they need to build and control their own video and content portals. (CBS CEO Les Moonves, by the way, will be onstage at the D conference in a couple of weeks.)

Jarvis likes Smith’s looseness, as I do (and always have), even though Valleywag recently and amusingly compared Smith to a “charming cad who makes every girl thinks she’s The One” in a recent post. Money quote from Jarvis (although he has to explain better the inside/outside thing to us thickheaded old-media types):

Why not encourage your audience to recommend and distribute your good stuff. It’s free marketing. It’s the endorsement that matters most. It’s only wise. But media has always been about control, about selling scarcity. So it’s damned hard for these guys to shift their mental map of the world and realize that they are not at center, we are. What they defined as inside is outside. This requires them to turn their world inside out. CBS is doing that.”

San Francisco’s controller’s office gave the thumbs up last week to a plan for EarthLink and Google to blanket the city with free wireless access, which moves the proposal another step closer to reality.

I interviewed the city’s Mayor Gavin Newsom, along with EarthLink founder Sky Dayton onstage at D last year (you can see pictures and video about the session here under “Wireless Panel”) about the effort, which is controversial here (and elsewhere) as costly and problematic, even as cities have been aggressively pushing such measures.

And so are tiny states. According to a story last week in the Burlington Free Press, Vermont and Rhode Island are vying to be the “first state to have border-to-border high-speed Internet.” While big states like Texas would have a hard time wiring their vast expanses, smaller is better for weensy states and some not-so-small ones, like Kentucky and South Carolina.

The competitive Vermont’s House and Senate just gave final approval this weekend to a bill to make it the first “e-state,” throwing in statewide cell coverage along with the broadband by 2010, using both public and private delivery methods.

Finally, in yet another link to the super-friendly Smith, the San Jose Mercury News picks five “hot” venture capitalists under 40 years old in a story last week. Thankfully, hot refers to their record, and included in the group is London-based Danny Rimer of Index Ventures, who has been involved in sexy (because of piles of money involved) companies like Tellme and Skype.

And, now, with CBS’s Smith and others, a recent $45 million investment in Joost, the online video service (from the founders of Skype, in fact) that I wrote a post about last week. Rimer, whom I met when he was an Internet analyst at Hambrecht & Quist, also worked hand-in-glove with Smith as a VC at the Barksdale Group, which closed at the end of the last bubble popping.

Other “hot” VCs under 40, by the way, are: Founders Fund’s Peter Thiel; Peter Fenton of Benchmark Capital; Accel Partners’ Kevin Efrusy; and, of course, the ubiquitous Roelof Botha of Sequoia Capital.

Please see this disclosure related to me and CBS.