Video Site Dispenses of Pre-Rolls, Launches Invite Ad Model

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VideoEgg“Pre-roll ads simply aggravate users and are generally ignored,” said Troy Young, CMO of online video publisher VideoEgg, in a statement. VideoEgg Inc. has launched a new ad platform that follows an invitation-based model to avoid the glazed eyes of pre-roll weary consumers.

VideoEgg has integrated the new VIBE (Viewer Initiated Brand Experiences) system into its existing Eggnetwork social advertising service, which contains 60 websites, including five of the top 20 social networking sites like AOL, Bebo and Tagged.

“Users in our communities consume an average of six pieces of video per session. We give advertisers an opportunity to become a relevant part of that playlist on the users’ terms. We strongly believe that what works best for users, works best for advertisers,” said Young.

Unlike pre-roll ads, which play automatically, VIBE ads place little clickable sections during a video as a ticker, or after a video has finished, inviting the user to click and find out more about a particular product or service. The video ad only plays when a user clicks on the invite. And ads aren’t limited to just videos. Users can click through to interactive mini catalogs and rich media-based games too.

According to Young, the VIBE system yields very high click-through rates. “A recent campaign for the season premiere of a FOX television show had click rates of more than seven percent,” he said.

Advertisers pay a low CPM for each invite, and a higher CPM for each ad watched. Since the advertiser only pays the higher CPM for impressions resulting from a user interaction, VideoEgg believes the VIBE system will help advertisers optimize advertising costs.

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