The Future of In-Stream Video Advertising for Yu and Me

The Future of In-Stream Video Advertising for Yu and Me

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Last month, we spoke with Jayant Kadambi, Co-Founder and President of YuMe, about their platform for video advertising and monetization, how best to measure the performance of video advertising, and the future of in-stream video advertising as it pertains to small and medium sized business advertisers.

In-Stream Video Advertising – Measuring Success

On the topic of measuring performance for online video advertising campaigns, Jayant agrees that what may be considered acceptable performance metrics for many interactive ad formats does not necessarily translate in terms of measuring the complete success of a video advertising initiative.

In the search business and in the display business, the primary metric people use is clicks… In video, depending on the campaign, a click may not be the best metric… You have a myriad of things that you can try…

There are many different things to pay attention to when measuring the success of a video advertising campaign and with the help of companies like YuMe, the industry is working to determine what the right performance metrics are.  As with all advertising, the right performance metrics will depend upon the goals of the advertiser and publisher and click-through rates are still an important metric.  That being said, Jayant talks about some additional measurements that are important to pay attention to.

…There’s terms such as completion rate – how much of the video did they watch?   Did they mouse over it, did they interact with the video?  Did they try and minimize it (the ad)? Did they not follow through with the ad then not watch the video (abandonment rate).

In-Stream Video Advertising for the Masses

We also asked Jayant to tell us when he thinks that video advertising will mature to the point that we see more wide-spread adoption by advertisers both large and small.

If the small and medium business advertiser wants to advertise… we want to provide the technology set for them. The issue right now is that there are billions and billions of people watching display and search advertising. Video is a little bit smaller than that. I think that it will take another 18 months for the scale to come.

This very much is in-line with what we heard from Ari Paparo, Group Product Manager of Advertising Product for Google in an interview we did last month, where Ari stated that,

Right now the in-stream video advertising market is very inefficient and thus the only companies that can make it worthwhile to participate are the very largest advertisers and video publishers. With the increasing interoperability we expect the barriers to participation to decline, which should open opportunities to smaller marketers.

About YuMe

For those of you who may be unfamiliar with YuMe, they are a video ad network and technology solutions provider that helps monetize over 500 million video streams per month across more than 500 publishers.  They help to power many of the pre-roll, mid-roll, post-roll, and overlay ads that you see on major publisher sites like MSN, NBC,, and others.  You can check out some samples of the video ad formats they power here.

I had the opportunity to speak with Jayant both before and after the interview and he really was a pleasure to speak with.  I enjoyed the end of the interview, where Grant refers to his closing line as “Corny” and Jayant states, “Absolutely.”  I choose to use that as our headline because we aren’t afraid of being corny here at ReelSEO, or at least, Grant isn’t. ;-)

Jayant, thank you for taking the time to speak with us.


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