Bazalgette was previously board director at Endemol and Channel 4, where he introduced 'Big Brother' to the UK.
The funding round was led by Oxford Capital Partners and STV Group, as well as existing institutional and individual shareholders.
MirriAd partners with broadcasters and brand owners to embed ads and logos into digital media content, such as online video, using its software.
According to MirriAd, the product-placement market is growing by more than 25% worldwide.
Bazelgette said: "This is a seminal moment for product placement."
He added that the company was in a growth phase, "with product-placement legalisation in Europe, the desire of brands to get closer to content, and with MirriAd’s compelling digital solution."
MirriAd was launched in September 2007 by former director of BBC Ventures, Mark Popkiewicz.