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The Associated Press is reporting on a startup business, YuMe Networks Inc., in Redwood City California. They are releasing an ad campaign that allows the customization of video ads for some television shows that are downloaded from a Web site.

According to the article YuMe’s technology allows marketers to attach ads at the beginning, middle, or end of downloaded videos, or as an overlay during the video itself. They’ve teamed up with BitTorrent Inc., which runs the Web site where the videos can be downloaded, who will soon be offering free downloads of television shows. Downloaded shows typically cost $1.99 will be offered for free - but with advertising. BitTorrent will start with nine video game-related shows with 15-second ads from game publisher Eidos Interactive Ltd.,

YuMe’s technology also allows marketers to keep track of how long viewers are actually staying with the commercial before skipping past it.

This shouldn’t be a surprise to anyone. It was only a matter of time before ads came into the online video biz. Many already feature them but this is certainly innovative. I think we can expect to see this applied to video every where soon. YouTube could slap ads onto every clip we upload. Similar to what we see on web sites now - ads, ads, ads - will we see an adsense like feature develop - applying ads based on the content of the video clip? Anything is possible.

This entry was posted on Monday, April 2nd, 2007 at 10:27 am and is filed under Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.