VideoEgg

VideoEgg: Suddenly They're A Facebook Ad Network

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VideoEgg has been exceptionally good at thinking ahead in their business and changing strategies when it made sense.

They launched in September 2005 as a way to publish video to the web from mobile and other devices. Soon they were allowing people to publish videos directly on the site, like YouTube. And they then aggressively pursued partnership deals to power the video feature on social networks and other sites. Today, they power video on 14 of the 20 largest social networks. And they also monetize those videos with a number of innovative ad units, sharing the revenue with partners.

Today VideoEgg is powering 680 million video plays per month, from 23 million unique users. They’ve built a large ad sales team to sell into those videos with flash pop-up ads that don’t disrupt video play but get in front of the viewer.

That ad sales team now wants more inventory. And so VideoEgg has morphed yet again. Their video business remains in place. But now they are leveraging that ad sales team to sell their flash ads directly into Facebook applications.

EggNetwork, A Facebook Ad Network

There are already at least three advertising networks aimed at Facebook applications – Lookery, fbExchange and a RockYou product. VideoEgg now jumps in the mix with EggNetwork, and they have an immediate and distinct advantage: a huge ad sales team with experience selling into big brand advertisers.

They’ve been quietly active for weeks, testing the platform and gathering data. The Flash ad units (example) don’t do much until you mouse over it, and then text is displayed along with a video clip or interactive game of some sort. CEO Matt Sanchez says that they are selling at above $10 CPM. And they will split revenue from the ads 60/40 with the application providers (60% to the application).

These ads will eventually be targeted demographically based on user data. For now, though, Facebook has put a use of most of this user information on hold as it figures out its strategy. When Lookery launched they had one set of rules in place in their terms of service. Now, they are taking a hard look at what data can be used by ad networks for free, and what should be used at all.

EggNetwork is clearly going to be an attractive option for larger application providers who don’t want to sell ads themself. VideoEgg already has a bunch of them using the service: Rock You, J. Squared Media, Graffitii, Renkoo and Flixster have all incorprated the ads into their applications. Early advertisers include Discovery Networks, Electronic Arts, Fox Searchlight, FX Channel, Paramount Pictures and Universal Pictures.

App-Camp 2007

VideoEgg is also hosting an event, called App-Camp2007, in San Francisco in late October. They’re promising a fun and informative environment for people to learn about application creation and monetization, and will be bringing in marketers and venture capitalists to make connections and provide further device.

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