• by Gavin O'Malley  @mp_gavin, June 17, 2008

Seeking a larger share of the online ad market, Microsoft has enlisted the help of Web video ad network YuMe to distribute unsold inventory across its various Web properties.

Scheduled to begin this summer, YuMe will provide video advertising network management capabilities and sales for unsold inventory on Microsoft's online properties.

"We plan on utilizing this service to provide YuMe and other ad networks access to Microsoft's unsold video inventory," said Rob Bennett, general manager, MSN Entertainment, Video and Sports. "We will further maximize the value of our unsold video inventory through YuMe's robust platform."

YuMe will monetize Microsoft's video advertising inventory by selling Microsoft's excess video ad inventory as part of YuMe's network of channels--News, Sports, Entertainment--allowing advertisers to purchase by audience and content genre.

As part of the agreement, Microsoft will also make use of NetworkMe, a capability of YuMe's ad platform that allows publishers to aggregate their video content into one private ad network, providing a consolidated view of available inventory.

With NetworkMe, a publisher gains unprecedented inventory liquidity and the ability to maximize CPMs and fill-rates across multiple properties.

A privately held company backed by Khosla Ventures and Accel Partners, among others, YuMe claims over 400 sites in its network, more than 150 million video streams, and 46.9 million unique visitors.