The Future of In-Stream Video Advertising for Yu and Me

The Future of In Stream Video Advertising for Yu and Me

Last month, we spoke with Jayant Kadambi, Co-Founder and President of YuMe, about their platform for video advertising and monetization, how best to measure the performance of video advertising, and the future of in-stream video advertising as it pertains to small and medium sized business advertisers.

In-Stream Video Advertising - Measuring Success

On the topic of measuring performance for online video advertising campaigns, Jayant agrees that what may be considered acceptable performance metrics for many interactive ad formats does not necessarily translate in terms of measuring the complete success of a video advertising initiative.

In the search business and in the display business, the primary metric people use is clicks... In video, depending on the campaign, a click may not be the best metric... You have a myriad of things that you can try...

There are many different things to pay attention to when measuring the success of a video advertising campaign and with the help of companies like YuMe, the industry is working to determine what the right performance metrics are.  As with all advertising, the right performance metrics will depend upon the goals of the advertiser and publisher and click-through rates are still an important metric.  That being said, Jayant talks about some additional measurements that are important to pay attention to.

...There's terms such as completion rate - how much of the video did they watch?   Did they mouse over it, did they interact with the video?  Did they try and minimize it (the ad)? Did they not follow through with the ad then not watch the video (abandonment rate).

In-Stream Video Advertising for the Masses

We also asked Jayant to tell us when he thinks that video advertising will mature to the point that we see more wide-spread adoption by advertisers both large and small.

If the small and medium business advertiser wants to advertise... we want to provide the technology set for them. The issue right now is that there are billions and billions of people watching display and search advertising. Video is a little bit smaller than that. I think that it will take another 18 months for the scale to come.

This very much is in-line with what we heard from Ari Paparo, Group Product Manager of Advertising Product for Google in an interview we did last month, where Ari stated that,

Right now the in-stream video advertising market is very inefficient and thus the only companies that can make it worthwhile to participate are the very largest advertisers and video publishers. With the increasing interoperability we expect the barriers to participation to decline, which should open opportunities to smaller marketers.

About YuMe

For those of you who may be unfamiliar with YuMe, they are a video ad network and technology solutions provider that helps monetize over 500 million video streams per month across more than 500 publishers.  They help to power many of the pre-roll, mid-roll, post-roll, and overlay ads that you see on major publisher sites like MSN, NBC, Blip.tv, and others.  You can check out some samples of the video ad formats they power here.

I had the opportunity to speak with Jayant both before and after the interview and he really was a pleasure to speak with.  I enjoyed the end of the interview, where Grant refers to his closing line as "Corny" and Jayant states, "Absolutely."  I choose to use that as our headline because we aren't afraid of being corny here at ReelSEO, or at least, Grant isn't. ;-)

Jayant, thank you for taking the time to speak with us.

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About the Author -
Mark Robertson is the Founder and Publisher of ReelSEO, an online information resource dedicated to the fusion of video, technology, social media, search, and internet marketing. He is a YouTube Certified, video marketing consultant and video marketing expert, popular speaker, and considered to be a passionate leader within the online video and search marketing industries. View All Posts By -

What do you think? ▼
  • Video_guy

    Interesting that he talks about inter-polarity being so important yet YuMe wants to force their pubs to use their tech only so they can block out other ad networks. The real problem in online video is the continued channel conflict strategy that YuMe, Tremor and others are trying to force. They are all fighting to assure their ownership of the stream yet they don't realize that this strategy is short term at best. For Video advertising to work it has to be able to function with every player, every ad server and be truly open. These companies are trying to create a proprietary sales channel and or ad serving solution so that they own the channels, they need to win on their merits not on their forcing the publishers to adopt their tech and or their ads.

    We've seen this play out before. Watch and wait, you'll see what and who wins in 2010

    • WhoLowMedia

      I hear you Video Guy, which is why I only offer this type of service to those who ask, everyone else is content with placing their videos on VIMEO (and yes YouTube for the masses). I do like the idea of having a (for lack of a better word) proprietary player as it can record these very specific metrics like "completion rate" and they certainly look a lot more professional on a website BUT i think i fear them a bit because at least on say a YouTube they have the ability to get viral hits via keywords and we are not SOLEY relying on other forms of marketing to get traffic on the clients site. ...i dont know, what do you think?

  • http://www.searchprosystems.com/ VSEOGUY

    Great video!
    clear and informative.
    One question....
    does YuMe have a facebook sharing option or is it only meant for web video that resides on a website that you must own?

  • http://biz-zoom.com/ Harry

    Love your latest on video p's. Always inspiring.