Troy Young VideoEgg

VideoEgg Unveils New Performance-Based Video Ads: Microsoft is Paying 50 Cents Per Interaction with its Ad, Report

In a major development in the way advertisers pay for advertising in video ads, VideoEgg has launched a new performance-based advertising system called AdFrames.

One of the first advertisers to sign on is Microsoft, which is advertising new features in Office 2007. Instead of paying publishers for the number of views, Microsoft is paying VideoEgg fifty cents per views, reports Brian Morrissey in Adweek.

The innovative San Francisco-based online video network, which first introduced overlay ads, also manages advertising on a cost per impression or CPM basis.

We are delighted that the folks at VideoEgg are moving the industry past the CPM model. After all, the engagement of watching video is much more valuable than a banner ad on a page which we largely ignore.

Troy Young, CMO of VideoEgg was at the Beet.TV broadcast center today for this interview.

-- Andy Plesser

Posted on Thursday, February 21, 2008

Category:

People & Blogs

Tags:

• VideoEgg
• Ad
• performance-based
• AdFrames
• CPM

[oneeezy]

thats a crazy great idea., lets say an add usually cost $20 CPM (cost per 1000 views) is now making $.50 per view which means if it was viewed 1000 times that would be $500. Guess we'll have to wait and see how this new advertising strategy adapts to the net. I haven't really seen this anywhere yet tho, seems pretty new