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Friday, September 29, 2006

Ad Network Fills Video Void

Video Egg this week hatched an advertising network that embeds ads into video streams generated by social networks. Advertisers can buy spots on the Eggnetwork that will run on sites including Current TV AOL, Bebo, Hi5, Dogster, and Tagged. VideoEgg also distributes software to simplify uploading videos.

Obviously the demand for online video is huge, and therefore the corresponding ad business will quickly become a multi-billion dollar industry. So it is not surprising that today VideoEgg announced it received $12 million in third round funding .

The trick will be to make sure that the ads don't run against objectionable content, and to target advertisements to the right audience. Since most of the sites either require or offer viewers to register, ad networks should factor in the user demographics.

Posted By John Gartner at 02:38 PM
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