Currently video ad networks find a large part of their business coming from large brands. This represents the first wave of internet video advertising, essentially the old wine of TV ad content produced by large brands and Madison Avenue, repurposed for a slightly different delivery channel (the internet). Brand advertising of such nature has so far not valued complex performance advertising technology, likely because of its legacy from TV ads, which as a medium did not lend itself to performance technology.
While brand ads on the internet will surely continue to be an important segment of the market, Ari Levy’s recent Bloomberg article on the future of internet video advertising (see – http://www.bloomberg.com/news/2013-05-07/online-video-ad-startups-seen-near-ipos-challenging-google-tech.html ) suggests much of today’s growth is coming from local advertisers like restaurants and retailers.
Google’s Adwords has long since proven such local and SMB advertisers care deeply about performance advertising technology, vastly preferring its effectiveness over more general brand ads.
All of the above suggests a strong trend towards growth in performance based video advertising technology.
Founder/CEO – Yactraq
To learn more about Jeh’s views on the subject you can contact him at email@example.com