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VideoEgg Offers Pay-Per-Interaction Video Ads

  • Adweek, Thursday, February 21, 2008 11 AM

VideoEgg, a video advertising network, is launching a new ad metric where advertisers only pay if a user interacts with their ad. The units appear like standard display ads, but when users mouse over them they open a Flash window that plays a full advertising clip.



Called AdFrames, the new service costs between 20 cents and $1 per interaction. Microsoft is one of its first test advertisers. AThe software giant is paying under 50 cents per view when users interact with ads of comedian Amy Sedaris showing off new features for Office 2007.

The idea here is to apply greater accountability to branding formats like video advertising, as pricing for Web ads remains heavily weighted towards performance-based formats like cost-per-click. According to the IAB, 50 percent of the deals completed in the first half of 2007 were performance priced. Brand advertising has a long way to grow--but it needs scale. VideoEgg says it reaches 50 million users per month, delivering video ads to sites like MySpace and Bebo.

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