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Adap.tv Improves Broadband Video Ad Targeting with CPC Approach
As the broadband video world continues to coalesce around advertising as its primary business model, there is a flurry of companies seeking to improve the monetization process. As I've written before, this is critical work, because at some point the bloom will be off the broadband video rose if participants can't earn an attractive ROI.
Enter Adap.tv, which is addressing the ad monetization challenge. The company was founded last year and is based in San Mateo, CA. It is backed by Redpoint and Gemini and now has 20 employees.
CEO/co-founder Amir Ashkenazi recently gave me a run-down on Adap.tv's approach and progress. Amir was the founder of Shopping.com, which was acquired by eBay and he has brought together many former colleagues for his experienced management team.
Like its competitors, the heart of Adap.tv's model is its ad targeting and relevance engine. Adap.tv uses a "multi-disciplinary approach": analysis of the video/audio (context, metadata, etc.), analysis of the ad (keyword submission, etc.) and analysis of the user (demographics, location, etc.). This data is then fed to a matching engine to pair ads with the most relevant video. Over time the system optimizes based on actual click behavior.
Adap.tv is highly focused on overlays (Amir believes this will be the "de-facto standard" soon), and provides a series of customizable templates for advertisers (see below Kayak overlay). It is also positioning itself as a cost-per-click model, so there's no fixed cost to advertisers. In fact, advertisers can power Adap.tv ads using the same keyword feeds they use for their keyword campaigns.
So far publishers have been responsive to the CPC model because they see overlays as opening up a lot of untapped inventory. Obviously implementing overlays needs to be done judiciously or the viewer experience will become cluttered and broken. Amir believes the whole broadband video ad model will move to CPC over time as advertisers become more sophisticated and focused on performance. This Google-like model would be very good news for advertisers, but would be a brave new world for traditional broadcast and cable networks long accustomed to CPM approaches in their traditional businesses.
While I think a more performance-based broadband ad environment would be welcome, I continue to believe a CPC/overlay approaches will ultimately co-exist with CPM/pre-rolls. There's a lot of interest in overlays, yet there are too many great 15 and 30 second TV spots not be re-used online and the CPMs are way too rich for big branded content providers to walk away from.
Other companies that are in the contextual analysis and/or overlay space include: ScanScout, Digitalsmiths (note: a VideoNuze sponsor), YuMe, blinkx, VideoEgg, YouTube, Brightcove, AdBrite, Viddler (which TechCrunch just wrote about yesterday) and others I'm sure I'm missing or are yet to surface.
Categories: Advertising, Startups, Technology
Topics: Adap.TV, AdBrite, Blinkx, Brightcove, Digitalsmiths, ScanScout, Viddler, VideoEgg, YouTube, YuMe
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UGC Video Ads Becoming More Viable
Announcements from both ScanScout and Digitalsmiths continue to show that ads against UGC video may become more viable. There has been much skepticism about whether the vast trove of UGC video will be monetizable. Concerns about UGC monetization have been partly behind the recent emphasis by traditionally UGC-centric sites like YouTube, Metacafe, Veoh and others to move up the video quality food chain by offering branded or independent video.
Last week ScanScout announced trademark approval for its "Brand Protector" technology which is aimed at allowing advertisers to have their messages accompany only content that is deemed appropriate. And today Digitalsmiths (disclaimer: VideoNuze sponsor) has announced "AdSafe", which has the same basic intent and may also functional at a more granular levels of acceptability. Both of these initiatives are should be read as good news in helping the UGC ad market get its footing. Brands looking to harness the power and popularity of UGC video should definitely be investigating these kinds of solutions.
Today Digitalsmiths also introduced "AdIQ", which brings the concept of "conquest ads" to the broadband video advertising world. For those unfamiliar with conquest ads, this is when a brand in the same category as a competitor buys inventory where a competitor is somehow mentioned or identified in the content itself. Here's a pretty good explanation from iMedia.
So for example, say Reebok is mentioned or identified in a video scene and say Nike wants to buy an overlay ad to play at that moment. Conversely, AdIQ allows Nike to ensure that its ad never runs against Reebok (or other competitors') content mentions. This is pretty cool stuff. But how about the media buyer who gets the responsibility to administer all this? I haven't seen the implementation, but I hope Digitalsmiths has made it simple to set up and monitor these campaigns!
Categories: Advertising, Technology, UGC
Topics: Digitalsmiths, ScanScout
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VideoNuze Goes Live
It's official - after months of intense development, VideoNuze went live today. I'm very excited about this first version of the site, and am deeply indebted to many of you who have provided me tremendous feedback, insight and support on the way to today's launch.VideoNuze 1.0 accomplishes what I set out to do at launch - provide a high-value, user-friendly online publication and community for busy video executives seeking to keep up-to-date with the industry's vast array of news and better understand what it means to their businesses. The two primary components of the site, "Analysis" and "News Roundup", are already well-stocked with content and will grow rapidly over time. In addition, I have a full roadmap of features which will also be introduced in the coming months.
As with all online initiatives, VideoNuze is a work in progress and I welcome your feedback. Please have a good look around and let me know what you think. What works well? What's missing? What's broken? No comment or observation is too small, I invite them all.
Today's launch wouldn't be possible without the support of an incredible group of charter sponsors, so I want to acknowledge and thank them again. Each signed on when there was not so much as an official name for the effort. They made a bet on my concept - that an online publication that relentlessly focuses on informing and educating broadband video decision-makers would add real value to the market. I greatly appreciate their confidence.
These companies are all leaders in the fast-evolving video industry and I encourage you to take time to learn about how they can contribute to your company's success:
If you are interested in learning about VideoNuze sponsorships, please click here for more information or contact me.And if you'd like to know more about Broadband Video Focus, my firm's subscription market intelligence service, please click here.I look forward to hearing from you!Categories: Miscellaneous
Topics: Akamai, Atlas Venture, Digitalsmiths, ExtendMedia, ICTV, PermissionTV, thePlatform, Voxant
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Broadband Video Contextual Ad Space Heats Up, Digitalsmiths Lands Series A Round of $6M
Tomorrow Digitalsmiths, an entrant in the budding broadband video contextual advertising space, will announce a $6M Series A round from The Aurora Funds, Chrysalis Ventures and individual investors. I got a briefing from Digitalsmiths's CEO Ben Weinberger and CTO Matt Berry along with the new investors. The company's new Videosense product builds off of their existing automated video indexing and search product known as InScene which Hollywood studios have been using for years to index and search stock footage.Videosense introduces a contextual ad matching process that matches ads to the content of videos based on an index of metadata that was extracted from the audio track and visual cues (scenery, characters, props, etc.). This matching and metadata gathering process is the company's secret sauce. As with all contextual approaches, the intention is to insert the appropriate ad at just the right moment. So say, for example, you're watching ‘24' online, when Jack Bauer pulls out his smartphone, a discreet ad for Treo pops up. The company can support all types of ads (video, text, banners, etc.) Digitalsmiths can do this across multiple video formats (Flash, WMV, Real, etc.) and plans to serve multiple devices as well.While they haven't announced any customers yet, Weinberger said they're in multiple live customer trials and should be announcing something soon. There's been lots of energy and top tier VC funding in the contextual video ad serving space recently. Other companies that we're aware of in this space include ScanScout, YuMe, Adap.TV, and Gotuit (which has been more focused on indexing than ads), along with blinkx, which just announced its "AdHoc" product today.Over the past year, vendors' efforts to improve upon today's vibrant, yet much maligned, pre-roll format have intensified. There are many different initiatives out there, such as new formats, interactivity, targeting, etc. Improvements in contextual targeting are part of this mix of innovation. All this activity isn't surprising as broadband video content providers have embraced advertising as their business model of choice.Since pre-rolls are still the lifeblood of the broadband video industry and will be for a while, smart vendors will seek to build on its momentum, while gracefully introducing new formats. And since much of the pre-roll delivery infrastructure is now in place, it's also essential for the new crop of contextual vendors to integrate seamlessly with existing ad networks. Digitalsmiths seems to be adhering to this game plan, and so their development is worth keeping an eye on.Categories: Advertising, Startups
Topics: Adap.TV, Blinkx, Digitalsmiths, Gotuit, ScanScout, YuMe
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