• by Mark Walsh  @markfwal, November 18, 2008

Video ad network VideoEgg is extending its AdFrames service to mobile devices, allowing marketers to initially run ads on iPhone applications and Web pages.

The company's AdFrames system, launched earlier this year, charges advertisers only if a user initiates a rich media ad and watches it for a brief time. VideoEgg charges up to $1 per interaction, but the typical cost-per-action (CPE) runs about 50 cents. The average time spent with ads is about 15 seconds.

"What we're doing is extending the AdFrames experience and pricing model to the mobile environment, where advertisers can get online and mobile as part of one package," said Troy Young, CMO of VideoEgg. The company is starting with display ads delivered to iPhone applications that fill the screen when tapped on, inviting users to play an ad clip.

Nikon, the U.S. Navy and Ubisoft Canada are among the first marketers to use AdFrames for mobile ads. Nikon, for instance, is using the service to promote its CoolPix and D90 cameras.

San Francisco-based VideoEgg is working with application developers and platforms including SGN, Jirbo, FlipSide5 and Optime Software to offer placement across popular free iPhone apps such as GasBag, Hangman, Scribble and iGolf.

It also plans to make AdFrames available on T-Mobile's G1 and other phones using Google's Android mobile operating system, as well as on BlackBerry devices. "What we're seeing is that mobile environments are going through a bit of a revolution where they're becoming media consumption platforms in their own right," said Young.

VideoEgg says its video network is now made up of more than 80 million unique visitors across roughly 200 video, gaming and social network sites as well as social applications.