Video Ads are in Season: Google, Others Seek Foothold in this Lucrative Market
According to a survey conducted by Burst Media, 7o percent of web users watch online content every week, and from that, a fifth of them have taken action after watching a video advertisement. The result shows that online video ads are in season. In fact, there are a good deal of companies setting their sights on the profitability of this particular online trend.
YouTube TrueView is a good example of the success of online video advertising. It serves 18 years-worth of video everyday. TrueView is advantageous for advertisers since they only pay when consumers watch their video ads. That will save them a good deal of money in theory, weeding out those who don’t watch. TrueView can also take other forms of advertisement, such as Google Click-to-Play or skippable ads on YouTube videos.
We also have Turn Media adding in-stream and mobile video advertising capabilities to their platform. The company also formed new partnerships with Adap.tv, AdBrite, BrightRoll Exchange, DoubleClick, LiveRail, and SpotXchange. And with the help of these new partners, Turn can now help advertisers execute and optimize video multi-channel campaigns across PC and mobile browsers, and as well as bring their offline video campaigns online.
“Turn continue to make it easy for brands to connect with their audiences across multiple advertising channels. This expansion beyond display enables our customers to apply the leading real-time optimization and bidding capabilities in Turn Media Platform to their multi-channel video campaigns. It also enabling them to maximize the value of their high-value video content by placing it in front of highly-qualified online targets,” said Bill Demas, chief executive officer, Turn, Inc.
LG also partnered with a video advertising technology company adding advertising capabilities to its Internet-connected televisions. The long term arrangement was announced Wednesday by LG Electronics and the partner company YuMe. Toyota Motor Sales USA is its first customer, promoting the 2012 Toyota Camry ad part of its largest marketing campaign.
And there there’s Adobe acquiring Auditude, a privately held video ad management platform, to develop a video ad business. The deal was said to have cost Adobe $120 million. It’s not an entirely new market for Adobe to tackle since they’re already involved in the video business with Adobe Flash Media Server 4.5 software and Adobe Pass, but it is an evolution in their involvement for this sector.
“We felt that Auditude was really a market leader, not only from a technology perspective, but also in the way that they look at the market,” said Adobe VP and GM of Media Solutions Todd Teresi. “Auditude is not only focused on video, but alternative devices as well… connected devices like tablets, smartphones [and] gaming consoles.”
Lastly we have Jivox, a global interactive online video advertising firm, securing $8.2 million funding from Fortisure Ventures LLC. It’s a US-based privately-held company with a development office in Bangalore.
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