• Ad Age, Monday, April 24, 2006 1:30 PM

Are five-second video ads the future of Internet advertising? Metacafe, a new competitor to YouTube, Google Video, Heavy.com and the like, seems to think so--or seem to think the new format is something that should become standard on short-form video sites. "Why not five-second video ads?" said the company's CEO. "I would gladly put those in front of videos. But I will never put 30-second ads in front of videos. It's too much. It ruins the experience for viewers." Metacafe only started selling ads a few months ago, and marketer interest in ramping up; so far it is only selling five-second spots from H&R Block, but more are in the works, including spots from major companies like Johnson & Johnson. Internet video services are new, but usage and revenue are growing quickly. A $200 million business in 2005, according to IDC estimates, the category is expected to reach $1.7 billion by 2010. Advertising is expected to account for half of that, the firm said.

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