YuMe Networks Incorporated is powering an ad campaign that allows the customization of video ads for some television shows that are downloaded from a Web site. Video ads already accompany television shows or clips that are streamed over the Internet, but the Redwood City-based Web ad startup is taking it a step further by allowing marketers to insert commercials at the beginning, middle, or end of downloaded videos, or as an overlay during the video itself. YuMe's technology also allows marketers to keep track of how long viewers are actually staying with the commercial before skipping past it. The company is among a growing number of startups trying to offer various approaches in video advertising to capitalize on the growing traffic in video distributed over the Internet.
YuMe's offering to attach ads to downloadable content was perfect timing for BitTorrent Incorporated, said Eric Patterson, the company's vice president of consumer services. BitTorrent sells most of its television programs for $1.99 per episode but starting Monday with the help of YuMe's ad network, BitTorrent will begin introducing downloadable TV shows that are free — but contain ads. BitTorrent will start with nine video game-related shows with 15-second ads from game publisher Eidos Interactive Limited, but the entertainment network aims to make all of its television programming free and ad-supported by the end of the year, Patterson said. "It's all about testing what type of ads will work. I don't think anybody knows at this point. But you're not going to see eight minutes of ads for 20 minutes of TV. There's no tolerance for that from consumers."
News source: MSNBC