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Is The Future of Video Platforms Ad Supported?

Posted on 4.17.2007
I must receive two to three emails each week on groundbreaking video platforms. These video networks act as both end-user access points and advertising network simultaneously and are increasingly getting attention from the Web marketing community as much as they are from Venture Capitalists. Case in point, Videoegg (which streams videos for companies such as AOL, Bebo, Hi5, and MyYearbook) recently received funding in the amount of 12 million from WPP, an advertising and communication service group, validating in at least some respects the increasing attention on this market and the opportunity it could provide.

While there is a lot of excitement about video, you have to wonder if publishers without a substantial amount of traffic will be able to monetize on the opportunity. Without having access to a substantial audience, ala YouTube, advertisers may end up spending their promotional dollars with little effect as the return received on direct video advertising would greatly depend on the quality of a lot more than an advertisement itself.

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