• by Mark Walsh  @markfwal, November 2, 2006

Digital marketing firm Atlas, a unit of aQuantive, announced on Wednesday the release of a new online video ad serving technology for pre- and post-roll ads.

The new product--Atlas In-Stream Video--will allow marketers and publishers to place ads before and after streaming video through an automated system that also tracks metrics including impressions, conversions and interaction with companion banner ads.

The ability to place video ads will be added to Atlas's desktop application for media buyers that already encompasses ad serving of banners, search, and rich media formats. Atlas's new video ad-serving system highlights recent efforts by ad technology firms to capitalize on the growing demand for video ads among online marketers.

Both upstart and established Internet advertising companies are vying to offer the video ad technologies that publishers and agencies will turn to for smooth delivery of costly video ads. Market research firm eMarketer recently identified online video advertising as the fastest-growing online ad format. It predicts video ad spending will grow by 71 percent this year to $225 million, and to $640 million by 2007. By 2010, video is forecast to make up 8 percent of the total online ad market.

Atlas aims to stand apart by adding video on top of its existing expertise in online ad-serving. "The benefit for advertisers is that this will allow them to get video ads online very seamlessly and an easy way to handle all the messy details of various video formats required by individual publishers," said Scott Ferris, senior vice president and general manager of Atlas Emerging Media.

He said Atlas is rolling out its video ad system gradually, working with the top 25 Web publishers to help prepare them to use the technology for placing pre-roll ads on their sites. Ferris added that 1,500 hundred agencies already use its desktop campaign management system, to which video will be added.

With a major industry conference coming up next week in New York, other companies are likely to also announce new video ad initiatives.