Podcast Video | Posted by Phil Leigh on March 13, 2008
If you would like learn what video advertising might be like in the future, this interview is for you. (Part 1 of 2)
Subject: Our guest today is Jayant Kadambi who is the CEO of YuMe Networks. His company is an Applications Service Provider (ASP) that places ads in digital video. YuMe offers a variety of ad formats including pre-roll, post-roll, mid-roll, overlays, player skins, and others. You can get a look at samples at their ad gallery.
Summary: In Part 1 of this two-part interview we get an overview of the company and its history. Additionally, Jayant leads us on a tour of the YuMe sample ad gallery where we view demonstrations of the different types of ads that can be inserted into digital video. Typically, all are clickable and can thereby generate instantaneous transactions with the viewing public.
By way of background we learn that YuMe is generating revenues on an ad sharing basis. There is no set-up cost to participating video programmers because YuMe is satisfied merely by taking a cut of the ad revenue that is generated from the ads that it inserts into the digital files.
Phil’s Take: The conventional television commercial is ending its useful life. It’s annoyingly interruptive and TiVo has conditioned us to pleasures of avoiding it altogether. Simultaneously, Google demonstrates that we’ll respond to ads that have context to our present interests. In combination the developments are important signposts pointing toward the future of video advertising.
Marshall McLuhan said it well about 50 years ago in Understanding Media when he observed that “Content follows form”. For example, with the advent of TV, radio shows like The Jack Benny Show, The Lone Ranger, and Burns & Allen, moved to television. Radio was forced to abandon scripted programming altogether. Thus cornered, radio evolved into a happy medium for music, albeit of a previously discredited genre, to wit, “hillbilly” repackaged as “rock & roll”.
Today, the Internet enables interactive and non-disruptive ads like clickable overlays. If McLuhan is correct, then it is only a matter of time before the digital video ads take on the forms enabled by the Internet. In short, we believe the future will be dominated by contextual non-disruptive ads, best exemplified today as clickable overlays.