2006 is the year of Web video--but that doesn't mean the whole world is making money on it. It means the whole world is still trying to see if they can corner a share of the high-traffic market. As
MarketWatch's Bambi Francisco says: "Until there is a better sense of what works, advertisements tied to video will remain a small portion of the total online ad pie." Just 2 percent of online
advertising was attributed to online video ads last year, according to eMarketer. This year, the research firm doesn't expect spending to rise past 2.3 percent, or $385 million. But what is the role
of online video tech vendors? How will they help accelerate spending? Francisco notes a few--including Vidavee, a New York-based video analytics company, that helped the HuffingtonPost deliver viral
video ads in a recent trial run. Vidavee gives users the ability to pause, stop, fast-forward or rewind videos, then email them to friends. One True Media is a Web-based startup that helps advertising
and video companies edit and upload video and images. Another, called Revver, places a clickable, single frame ad at the end of popular videos, sells that to an advertiser, then splits the revenue
with the video's creator and developers. Advertisers pay per click. Another startup, called Dave.tv, is trying to get video producers to create a social networking community that directs traffic to
affiliates.
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