YouTube co-founder Steve Chen says that live streaming video is
something that YouTube has always wanted to do, and that this year,
with the resources of Google, it is finally going to happen.
Friday, February 29
Veoh is raising a round, claims to be pretty big and growing
from venturebeat
Updated with more information from the company
Online video startup Veoh is in the process of raising a $40 million
round at a proposed $150 million valuation and has hired investment
bank Bear Sterns to help with the effort, Silicon Alley Insider
reports.
San Diego-based Veoh is a distant competitor to market leader YouTube,
but still claims to be growing at a healthy rate. The site features
user-created videos, clips from partners such as the Independent
Comedy Network, as well as content from large companies like Viacom.
From what we hear, the company is well respected in the media world,
partially because it's made a point of forging partnerships with
entertainment companies.
However, Veoh's traffic numbers are contested, as they have been at
least since the company raised $26 million round last spring (our
coverage).
Last December, third-party analytics firm Comscore showed Veoh
bringing in nearly 16 million monthly unique visitors worldwide, with
only 3.5 million of those in the US. That's versus YouTube's nearly
250 million. Meanwhile, rival analytics firm Nielsen says Veoh
received more than 2 million unique US viewers in December (not
visitors).
[Update: Veoh tells me it has more than 23 million monthly video
viewers worldwide, defined as people who started playing a video on
the Veoh home site or on a Veoh video embedded in another site. It
says that Nielsen's panel may be missing large chunks of Veoh traffic,
because the panel is comprised of the wrong demographic. It says that
using a separate Nielsen tracking service, the web analytics firm
obtained numbers much closer to Veoh's own.]
Today, Spark Capital investor Bijan Sabet, who sits on Veoh's board,
writes that Nielsen's numbers are wrong, after SAI cited them in its
article.
Sabet says that Veoh's internal server logs show 21 million unique
monthly viewers in December, up from 2.5 million at the beginning of
the year. He also says that users are watching more than 30 million
hours of Veoh videos per month, now.
So maybe Veoh is pretty big, but like every other video company, it is
trying to figure out how to monetize. Many startup rivals have also
raised large amounts of money. Two examples: Last year, DailyMotion
raised $30 (our coverage) and MetaCafe raised $34 million (our
coverage). Hosting and streaming lots of videos gets expensive, and
right now there's no way to cover costs.
[Update: I asked the company about monetization. Veoh says the average
user spends more than 87 minutes on the site per month, with much of
the viewing happening during evening prime time hours. It says its
audience presents great opportunities for brand advertisers.]
DoubleClick brings HD to video ads
Advertisers can now create and deliver rich media video ads in high
definition to further captivate audiences, thanks to DoubleClick's
latest feature. Not all ads are created equal and the battle is on to
keep creative treatments and delivery methods "novel" and consumer
eyeballs focused.
definition to further captivate audiences, thanks to DoubleClick's
latest feature. Not all ads are created equal and the battle is on to
keep creative treatments and delivery methods "novel" and consumer
eyeballs focused.
Enter DoubleClick's rich media with HD video. Now Internet users can
experience online adverts in the same quality as other mediums,
quality that advertisers have had to sacrifice online. Ads may even be
expanded to fit full screen.
Epson is the first to use DoubleClick's new feature, implemented as
part of their "Epsonality" campaign. "HD Video lets us deliver our
creative in a way that reflects the high quality of Epson products,"
said Jordan Kretchmer, associate creative director at Butler, Shine,
Stern & Partners, creators of the campaign.
"Consumers aren't used to seeing such pristine video online, so we
expect the new HD technology to capture peoples' attention like a
standard video unit never could," he added.
Thursday, February 28
iBloks Rolls Out New Ad Widget So Video, IM Enthusiasts Can Share in Real Time
From Adotas
iBloks today announced that is launching iBloks Video Messenger so consumers can IM and watch videos together – while logged onto Microsoft's Windows Live Messenger. iBloks designed the advertising and consumer widget to connect video enthusiasts and IM customers – it essentially eliminates the unbearable delay e-mail users must contend with when sharing videos.
The widget will be launched with movie content courtesy of Fox Home Entertainment – and using the Windows Live services will significantly increase iBloks' reach, the company says.
"Premiering iBloks Video Messenger widget that includes access to over 300,000,000 Windows Live Messenger consumers unleashes a powerful widget that enables our fans to easily IM each other and watch videos together. By making their lives more interesting and providing convenient access to amazing content from films like Alien Versus Predator Requiem we are delivering on our commitment to entertain and delight fans," said John Cosley, Director of Digital Marketing at Fox Home Entertainment.
The widget can be deployed on a web page, as a video ad or as a gadget on sites like Google , FaceBook and other social network sites.
iBloks today announced that is launching iBloks Video Messenger so consumers can IM and watch videos together – while logged onto Microsoft's Windows Live Messenger. iBloks designed the advertising and consumer widget to connect video enthusiasts and IM customers – it essentially eliminates the unbearable delay e-mail users must contend with when sharing videos.
The widget will be launched with movie content courtesy of Fox Home Entertainment – and using the Windows Live services will significantly increase iBloks' reach, the company says.
"Premiering iBloks Video Messenger widget that includes access to over 300,000,000 Windows Live Messenger consumers unleashes a powerful widget that enables our fans to easily IM each other and watch videos together. By making their lives more interesting and providing convenient access to amazing content from films like Alien Versus Predator Requiem we are delivering on our commitment to entertain and delight fans," said John Cosley, Director of Digital Marketing at Fox Home Entertainment.
The widget can be deployed on a web page, as a video ad or as a gadget on sites like Google , FaceBook and other social network sites.
Wednesday, February 27
Denuo to Advise Blinkx on Video Search and Network Ads
From ClickZ
Publicis-owned consultancy Denuo will advise Blinkx on development of the video search firm's ad products under a new relationship between the two.
The paired companies plan to collaborate on ad formats, targeting methods and ideal environments for video ads on platforms operated by Blinkx, and on video-based advertising in general. Denuo clients may also place campaigns on the Blinkx site and on its contextual video ad engine, called AdHoc.
"Denuo has access to many agencies and clients that have an interest in tapping into [our] audience," said Blinkx CEO Suranga Chandratillake. "We will work together to figure out ads and units that are affective. We will launch those on our site doing a lot of testing and trialing."
Denuo's head of new ventures and partnerships practice, Tim Hanlon, stessed the importance of discovery in the partnership. He emphasized the necessity of consumers not only finding relevant programming, but also advertising.
When it launched, Denuo established relationships with a number of up and coming Web start-ups, offering advisory services in exchange for "first mover rights for clients" and in some cases an investment stake. It holds stakes in Brightcove and Shadow TV, among other firms.
Further details about the pairing were sketchy yesterday, though Chandratillake said the companies hoped to experiment with untried video ad strategies. He said an example might include possibilities for running video ads on Blinkx search results pages. The company's results pages currently display text ads only.
"We're a search engine. We're very interested in how we can build video advertising into that experience," he said. "Can we actually have sponsored video matches?"
Blinkx has tried to diversify over the past year, rolling out a contextual ad targeting system called AdHoc and announcing plans for a premium video destination to be called Blinkx Broadband TV. BBTV was originally planned for Fall 2007, but the company postponed its release and now expects to unveil it in March.
Publicis-owned consultancy Denuo will advise Blinkx on development of the video search firm's ad products under a new relationship between the two.
The paired companies plan to collaborate on ad formats, targeting methods and ideal environments for video ads on platforms operated by Blinkx, and on video-based advertising in general. Denuo clients may also place campaigns on the Blinkx site and on its contextual video ad engine, called AdHoc.
"Denuo has access to many agencies and clients that have an interest in tapping into [our] audience," said Blinkx CEO Suranga Chandratillake. "We will work together to figure out ads and units that are affective. We will launch those on our site doing a lot of testing and trialing."
Denuo's head of new ventures and partnerships practice, Tim Hanlon, stessed the importance of discovery in the partnership. He emphasized the necessity of consumers not only finding relevant programming, but also advertising.
When it launched, Denuo established relationships with a number of up and coming Web start-ups, offering advisory services in exchange for "first mover rights for clients" and in some cases an investment stake. It holds stakes in Brightcove and Shadow TV, among other firms.
Further details about the pairing were sketchy yesterday, though Chandratillake said the companies hoped to experiment with untried video ad strategies. He said an example might include possibilities for running video ads on Blinkx search results pages. The company's results pages currently display text ads only.
"We're a search engine. We're very interested in how we can build video advertising into that experience," he said. "Can we actually have sponsored video matches?"
Blinkx has tried to diversify over the past year, rolling out a contextual ad targeting system called AdHoc and announcing plans for a premium video destination to be called Blinkx Broadband TV. BBTV was originally planned for Fall 2007, but the company postponed its release and now expects to unveil it in March.
Monday, February 25
Video player company Fliqz raises $2.5M more from internal investor to tide it over
Fliqz, an Emeryville, Calif. company that offers customized video
players to Web site owners, has added a $3.2 million to its second
round of funding.
Mohr Davidow Ventures, which previously provided $2.5 million in the
second round, added the new capital, according to VentureWire.
And as previously reported, the company raised $750,000 in backing
from a number of angels.
The company says it has more than 3,000 customers, including Major
League Baseball and VH1, among others, but its not clear how the
company is making money. It sells a "hosted" version for as little as
$50 a month.
Fliqz is apparently looking to raise more venture money, and so this
round tides it over until it can do so.
players to Web site owners, has added a $3.2 million to its second
round of funding.
Mohr Davidow Ventures, which previously provided $2.5 million in the
second round, added the new capital, according to VentureWire.
And as previously reported, the company raised $750,000 in backing
from a number of angels.
The company says it has more than 3,000 customers, including Major
League Baseball and VH1, among others, but its not clear how the
company is making money. It sells a "hosted" version for as little as
$50 a month.
Fliqz is apparently looking to raise more venture money, and so this
round tides it over until it can do so.
DivX is shutting down its video-hosting service, Stage6.
The company experienced significant growth of service last year and
said it would spin out Stage6 as a separate company to raise venture
money. Now it says the service simply became "a very expensive
enterprise that requires an enormous amount of attention and resources
that we are not in a position to continue to provide."
said it would spin out Stage6 as a separate company to raise venture
money. Now it says the service simply became "a very expensive
enterprise that requires an enormous amount of attention and resources
that we are not in a position to continue to provide."
Poles Apart on Online-Video Habits
From the NYTimes:
The gulf between casual and heavy consumers of online video is startlingly wide, according to figures released in mid-February. Among people who watch at least some online video each month — from short clips on YouTube to full-length programs on NBC.com and the like — the highest-consuming fifth watches more than 140 times as much as the lower half.
Skip to next paragraph
"It's a clear indicator of how early we are in online video," said Jarvis Mak, a vice president at Media Contacts, an online ad buyer that did the study with the research firm comScore. "If you look at overall Internet usage, the difference between the heaviest users and the lightest users is something like 24 times."
Mr. Mak predicted that this disparity would narrow as television networks continued to put programs online, attracting novice users. "It took a while to decide that this would not cannibalize their broadcasts," he said, "but now they're putting a lot of stuff on their Web sites" and deciding how much to distribute on sites like Hulu.com that aggregate videos.
ComScore gathered the data using special software installed on the computers of a panel of Internet users.
The gulf between casual and heavy consumers of online video is startlingly wide, according to figures released in mid-February. Among people who watch at least some online video each month — from short clips on YouTube to full-length programs on NBC.com and the like — the highest-consuming fifth watches more than 140 times as much as the lower half.
Skip to next paragraph
"It's a clear indicator of how early we are in online video," said Jarvis Mak, a vice president at Media Contacts, an online ad buyer that did the study with the research firm comScore. "If you look at overall Internet usage, the difference between the heaviest users and the lightest users is something like 24 times."
Mr. Mak predicted that this disparity would narrow as television networks continued to put programs online, attracting novice users. "It took a while to decide that this would not cannibalize their broadcasts," he said, "but now they're putting a lot of stuff on their Web sites" and deciding how much to distribute on sites like Hulu.com that aggregate videos.
ComScore gathered the data using special software installed on the computers of a panel of Internet users.
Brightcove Transforms Economics of Internet Video with Support for Google AdSense for Video Beta
Consumer-friendly Ad Format Gives Web's Top Content Providers Ability to Deliver Video Ads at Scale
Serving ads based on both the content of an Internet video and the context of a web page, AdSense for video beta gives media publishers the additional ability (beyond direct ad sales) to target tailored in-stream overlay ads from Google's large base of advertisers. Publishers and content providers can control which videos get which ads and when the ads play in each video. Appealing to both consumers of online video and the advertisers trying to reach them, AdSense for video's InVideo and text overlay ad format is non-disruptive and does not separate viewers from their desired content.
"Video and rich media continue to account for an increasingly large segment of online content - Brightcove customers alone reach 130 million unique users a month across thousands websites," said Chris Johnston, director of ad product management, Brightcove. "Brightcove's support of Google's AdSense for video beta is particularly important because it combines a vast ad network with the market-leading Internet video publishing platform - ultimately creating a new and powerful, consumer-friendly monetization opportunity for news and entertainment programmers worldwide."
"Monetization of online video continues to be critically important to all video producers," said Will Richmond, president of Broadband Directions LLC. "The market for ad-supported video is evolving, with lots of different approaches. Building from existing, successful approaches and technologies is a smart strategy especially when it comes to capturing revenue from periodic traffic spikes and remnant inventory."
Google's AdSense for video beta is currently available through Brightcove in a limited beta release with select customers. The company said they plan to make the feature generally availability to publishers in 2008.
Cambridge, MA (February 21, 2008) - Brightcove, a leading Internet TV platform, today announced support for the AdSense for video beta program, Google's contextual advertising technology for online video. Brightcove's support of the AdSense for video beta program unlocks a powerful economic proposition for the Web's top media publishers. Brightcove customers, which include some of the world's largest and most innovative media, entertainment and consumer brands, will now have an additional and complementary advertising opportunity available to monetize video streams across their web properties.
Serving ads based on both the content of an Internet video and the context of a web page, AdSense for video beta gives media publishers the additional ability (beyond direct ad sales) to target tailored in-stream overlay ads from Google's large base of advertisers. Publishers and content providers can control which videos get which ads and when the ads play in each video. Appealing to both consumers of online video and the advertisers trying to reach them, AdSense for video's InVideo and text overlay ad format is non-disruptive and does not separate viewers from their desired content.
"Video and rich media continue to account for an increasingly large segment of online content - Brightcove customers alone reach 130 million unique users a month across thousands websites," said Chris Johnston, director of ad product management, Brightcove. "Brightcove's support of Google's AdSense for video beta is particularly important because it combines a vast ad network with the market-leading Internet video publishing platform - ultimately creating a new and powerful, consumer-friendly monetization opportunity for news and entertainment programmers worldwide."
"Monetization of online video continues to be critically important to all video producers," said Will Richmond, president of Broadband Directions LLC. "The market for ad-supported video is evolving, with lots of different approaches. Building from existing, successful approaches and technologies is a smart strategy especially when it comes to capturing revenue from periodic traffic spikes and remnant inventory."
Google's AdSense for video beta is currently available through Brightcove in a limited beta release with select customers. The company said they plan to make the feature generally availability to publishers in 2008.
Online Video: A Changing Picture
Online Video: A Changing Picture
A new eMarketer report analyzes the factors that are inexorably leading to convergence between television and online video content.
A new eMarketer report analyzes the factors that are inexorably leading to convergence between television and online video content.
Thursday, February 21
Google Expands AdSense For Video, Sets Deals With Tremor, YuMe, Others
From mediapost:
IN A BID TO ACCELERATE its role in the burgeoning online video
advertising marketplace, search giant Google this morning is
announcing a slew of deals expanding its AdSense for video beta. To
date, the AdSense program has focused mainly on enabling Web
publishers to serve text-only ads. The video beta version, enables
publishers to serve targeted, contextually-relevant video graphical
ads and text overlays, and is seen as an alternative to the pre-roll
an post-roll advertising clips that have become the industry's default
standard advertising format.
IN A BID TO ACCELERATE its role in the burgeoning online video
advertising marketplace, search giant Google this morning is
announcing a slew of deals expanding its AdSense for video beta. To
date, the AdSense program has focused mainly on enabling Web
publishers to serve text-only ads. The video beta version, enables
publishers to serve targeted, contextually-relevant video graphical
ads and text overlays, and is seen as an alternative to the pre-roll
an post-roll advertising clips that have become the industry's default
standard advertising format.
Google has been working on ways to expand its reach into video ever
since its $1.65 billion acquisitions of YouTube in 2006, and recently
began accelerating its role in TV advertising sales, as well, via its
AdWords For TV program, which enables advertisers to buy addressable
TV advertising on cable and satellite TV systems.
Early this morning, Google announced deals with the Tremor Media and
YuMe video advertising networks, two of what are expected to be
several partnership deals for its AdSense for video expansion.
Tremor said it has incorporated "one-click integration" of Google's
contextually targeted ads into its dynamic ad insertion platform,
Ad-inStream, for publishers in Tremor Media's network to accept
targeted Google AdSense for video advertising formats with only a
check-box.
According to comScore, Tremor Media provides access to consumers
through their network of more than 800 aggregated sites that reach 94
million unique users every month. Publishers across Tremor Media's
network can now support traditional text overlays through Google's
AdSense for video beta, providing contextually targeted advertising by
leveraging a video's metadata.
In addition, Tremor will also support InVideo graphical and rich
media overlays that aid advertisers with a consistent brand message
across their traditional display advertising as well as emerging video
ad formats.
Google Extends InVideo Ads to AdSense Net
from mediaweek
Google is extending InVideo Ads – the "overlay" banner and text ad units the company rolled out on YouTube last year- to its AdSense network of Web sites.
Last summer, the Mountain View, Calif.-based search giant introduced InVideo ads – semi-transparent banner-like placements that appear once video clips start playing, as a less-intrusive alternative to pre-roll 15 and 30-second video spots. By extending them to AdSense, the company's ever-growing network of small and mid sized sites for which it supplies text and video advertising, Google says it will be able to deliver online video ads which are contextually targeted, based on either the actual video content they appear atop or the content on the Web pages they run on.
As online video advertising has risen to prominence, Google has run several test programs on its AdSense network, including a user-initiated "click to play" offering that invited users to sample short snippets of content to streaming video ads that participating publishers could implement and control however they preferred. Until now however, video advertising on Google remains in its infancy, as the company continues to garner the vast majority of its ad revenue from its core search ads.
For this new extension, Google has yet to list any advertisers that have signed on. Among the initial participating publishers are the sites VidShadow, Mondo Media and JoeCartoon.
Wednesday, February 20
CNET TV Relaunches Video-On-Demand Network
From Mediapost
AIMING TO CAPTURE A LARGER share of tech-hungry consumers, CNET has relaunched its video-on-demand network, CNET TV.
"We've seen a 60% increase in viewership since last year, and we're looking for ways to continue that incredible growth," said Joe Gillespie, executive vice president of CNET.
CNET remains by far the most-trafficked tech news property on the Web. The site was drawing roughly 61.5 million unique monthly visitors as of December, according to comScore, while its closest rival, NetShelter, was recording about 26 million. CNET's numbers, however, were down 17% year-over-year, while NetShelter's nearly doubled.
The tech publisher first moved into traditional media in mid 2006 with deals to supply content to three video-on-demand TV networks. Through partnerships with Cox Communications, TiVo Inc., and TVN Entertainment, CNET began offering paid TV subscribers a range of ad-supported content, including gadget reviews, news reports, trend stories and user generated video.
Since 2006, CNET TV has also existed as a stand-alone Web site, where consumers can draw from various topic channels to program their viewing experiences. Interactive tools let users engage with the site's editorial staff, and share their customized playlists with friends.
The re-launched service includes a number of new features--chief among them a new closed-captioning option. Through partnerships with Automatic Sync Technologies and Adobe Systems, the captioning system is an attempt by CNET to reach an estimated 30 million deaf and hard-of-hearing U.S. consumers.
Not only that, but the captioning makes it far easier for CNET to monetize its video content, Gillespie said.
"It turns into SEO honey," Gillespie said of the meta data, which greatly improves the search engine optimization process.
Randall Rothenberg, president and CEO of the Interactive Advertising Bureau, described CNET's revamped service as "emblematic of the next phase of online video," and expects other top publishers to follow CNET's lead.
In addition to closed captioning, CNET TV has unveiled a more user-friendly design, with video content from premiere partners such as Geek Entertainment TV and Revision 3, along with more original shows featuring CNET personalities and new additions like Natali Del Conte, former host of PodShow's TeXtra, and Kara Tsuboi.
AIMING TO CAPTURE A LARGER share of tech-hungry consumers, CNET has relaunched its video-on-demand network, CNET TV.
"We've seen a 60% increase in viewership since last year, and we're looking for ways to continue that incredible growth," said Joe Gillespie, executive vice president of CNET.
CNET remains by far the most-trafficked tech news property on the Web. The site was drawing roughly 61.5 million unique monthly visitors as of December, according to comScore, while its closest rival, NetShelter, was recording about 26 million. CNET's numbers, however, were down 17% year-over-year, while NetShelter's nearly doubled.
The tech publisher first moved into traditional media in mid 2006 with deals to supply content to three video-on-demand TV networks. Through partnerships with Cox Communications, TiVo Inc., and TVN Entertainment, CNET began offering paid TV subscribers a range of ad-supported content, including gadget reviews, news reports, trend stories and user generated video.
Since 2006, CNET TV has also existed as a stand-alone Web site, where consumers can draw from various topic channels to program their viewing experiences. Interactive tools let users engage with the site's editorial staff, and share their customized playlists with friends.
The re-launched service includes a number of new features--chief among them a new closed-captioning option. Through partnerships with Automatic Sync Technologies and Adobe Systems, the captioning system is an attempt by CNET to reach an estimated 30 million deaf and hard-of-hearing U.S. consumers.
Not only that, but the captioning makes it far easier for CNET to monetize its video content, Gillespie said.
"It turns into SEO honey," Gillespie said of the meta data, which greatly improves the search engine optimization process.
Randall Rothenberg, president and CEO of the Interactive Advertising Bureau, described CNET's revamped service as "emblematic of the next phase of online video," and expects other top publishers to follow CNET's lead.
In addition to closed captioning, CNET TV has unveiled a more user-friendly design, with video content from premiere partners such as Geek Entertainment TV and Revision 3, along with more original shows featuring CNET personalities and new additions like Natali Del Conte, former host of PodShow's TeXtra, and Kara Tsuboi.
Friday, February 15
Google testing video ads in search results
From VentureBeat:
Today, Google started testing video ad placement in search results
according to The New York Times Bits blog. Though just a very limited
trial for now, this is an important step in the evolution of the
company's bread-and-butter advertising business.
Even though Google has run both image-based and video ads on sites
using their AdSense platform for a while now, the Google search
results page has always been restricted to the simple text-based
advertisements that don't overwhelm results. As Google's vice
president of search products and user experience, Marissa Mayer, puts
it "We were doing text-based search that was all textual. Visual ads
don't work in that format."
However, with Google now shifting toward "universal search" that
includes images and videos in results, the time has come to test out
expanding the ads that accompany those results as well. Says Mayer,
"With universal search, something is getting shaken up a bit on the
bottom part of the page - The ads on the top part of the page should
match."
Google is indicating that these video ads will appear small on the
page and only expand to playable size when a user chooses to click on
the 'plus' button similar to what is done currently with YouTube
videos in search results
Overlay.tv launches new platform for video ads
Overlay.tv today launched a video-commerce platform that may give
marketers a new way to monetize on online video.
marketers a new way to monetize on online video.
Even online video mammoth Google/YouTube hasn't successfully
implemented a way to extract revenue from its billions of user
generated videos. A number of sites have taken to inserting "pre-roll"
ads into the videos they offer — ads that viewers are forced to sit
through prior to watching the featured content. But the big video
sites haven't adopted pre-roll ads, and for good reason: They don't
work, and neither have contextual banner ads so far.
Enter Overlay.tv. The Toronto, Canada-based company offers a
destination where marketers and users can place "overlays" of content
onto videos streamed from more than 20 online video sites, including
YouTube, metacafe, videojug, and others (it streams the video and
doesn't actually store it on its servers for copyright reasons).
Marketers and users using the platform can then overlay selected
videos with pictures, words and graphics that link to products or
information on external websites.
So take a video clip of, say, Fashion Week in New York City. A
marketer could link a certain shoe or dress in the video to a purchase
point to buy the item. It can then embed this overlaid video in blogs,
websites, and MySpace profiles. Overlay.tv has also launched a
Facebook application that lets users access its platform directly from
Facebook.
And unlike pre-roll ads, viewers can opt out of these overlay ads if
they choose to, the company says.
In one example you can link to here, you'll see a video clip called
"How to Be the Perfect Boyfriend." Overlays in the video link viewers
to how-to books, flowers.com and other relevant vendor sites.
Overlay.tv generates revenue from its more than 600 affiliate
partners, including Amazon, iTunes, and Walmart, through
cost-per-action and cost-per-click at about 5 to 12 percent revenue of
what the merchant makes on merchandise sold through click-throughs.
Overlay's users also get a share in the revenues. The company says it
distributes anywhere from 25 to 50 percent of this form of revenue to
its users.
Overlay.tv also plans to generate revenue through partnerships with
online video destinations as well as media companies, such as record
labels. It's currently at the contract stage with a major company in
the online video space and a major record label interested in
licensing the Overlay platform, although CEO Rob Lane wouldn't name
the two companies. The companies would theoretically integrate
Overlay's platform into their sites, so that users and marketers would
have the same ability to link advertisements directly to the video.
The majority of online advertising is focused on professionally
produced content, Lane says, while no one has successfully advertised
through user-generated content. To illustrate his point, he gives an
example of a user watching a mountain biking clip. This user may not
be interested in a toothpaste ad because it's irrelevant to mountain
biking, but he or she may want to know the exact make and model as
well as the cost of the bike used in the video. The only way to market
effectively is to bring the user in, Lane says.
Many big brands would like to advertise through user-generated
content, but they don't know how, he says. The Overlay platform could
also help marketers find out how effective a product placement is in a
video by tracking the analytics Overlay provides.
Overlay.tv was formed in mid 2006 and received $4.6 million (Canadian)
last November from Canadian VCs Celtic House Venture Partners
, Edgestone Partners and Tech Capital.
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