VideoEgg’s overlay advertising system has been in the market for a year and is driving “significant” revenue for the company. it’s so successful, in fact, that they recently launched a Facebook advertising network based on the same technology.
The idea is to use a Flash overlay advertisement with some basic information and graphics that takes up a small part of the viewable video area. Users click the ad and get a more in depth video ad. It’s less intrusive than a pre or post roll ad, and has far better performance than ads placed around a video. It’s likely to become the standard way ads are placed on video, even potentially on normal television as the thirty second ad spot continues to decline.
Given VideoEgg’s success with the unit it’s no surprise that YouTube has adopted the same format with their advertising. But it is surprising that YouTube failed to give even a passing mention to the company that invented the unit. VideoEgg also claims to have a patent application on this – something YouTube will certainly have to deal with down the road.
Nick Carr points out that much of the early press on YouTube was written by people who failed to do their homework. Carr trashes a CNET article that he says was basically an ad for YouTube. CNET subsequently changed the title of their article but there is still no mention of VideoEgg’s invention of the unit
Meanwhile, VideoEgg seems to be handling the situation well and taking advantage of the publicity. They added the graphic above to their home page, and are talking to press about their product. Suddenly, everyone is interested.