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BizReport : Research : May 24, 2007

Ad technology is patented for online video

Two online companies are racing to corner the market on embedded ads for online video. Get Interactive and Adjustables have each patented a different kind of ad embedding technology. Both patents would simplify the ability to embed ads and marketing messages within online video platforms.

by Kristina Knight

The Adjustables platform would allow for banners, logos, text and picture-in-picture ads within a piece of online video. The ads would be based on the content of the video and on the past activities of the viewer. Currently the platform is in beta testing, but the company expects to release a full version this summer.

Meanwhile the Get Interactive platform parks a button for ads beside an online video viewer. The button then takes users to specific scenes, those scenes incorporate ads and offer information on different products. Users can buy the products without leaving the video viewer.

According to a recent test, 70% of users on the Get Interactive platform stayed to watch the video and to roll over different ads within the video. Viewers watched 4 1/2 screens of video, 6 1/2 ads and had a 12% click through rate on average.

Online video has been gaining momentum fast but advertisers have worried about the ability to monetize the medium. Pre-roll ads are said to be ignored or skipped over while display ads have been said to be not interactive enough. Embedding ads within the video space seems the best option, and offering users a simple way to reach stores and find different items could be the best way to monetize the vids.

Tags: online video, video advertising, video content

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