VideoEgg explains engagement by saying “Engagement doesn’t begin until a user rolls over the ad, and the AdFrame Invitation has expanded into an overlay. AdFrames includes a three-second delay during the roll-over to ensure the user is not engaging with the ad inadvertently.”

Paying for engagement is a new step for video monetization. It makes the advertiser happy in that they won’t have to pay unless a user truly pays attention to an ad, but publishers will not get revenue until a user has gone into action, the report continues.

Meebo and Flixster have decided to participate in the new service, which will act as an addition to the existing services offered. Should cost-per-engagement go well, the days of CPM in video could be numbered.