Advertising.com Launches CPC-based Video Ad Product

Advertising.com launched yesterday a product that provides a cost-per-click (CPC) form of video advertising.

Advertising.com president Lynda Clarizio said the new product, called Performance Video Product, will soon offer a cost-per-action payment plan. It also maintains a cost-per-thousand (CPM) payment structure for publishers hoping to better monetize online video.

“What we are really talking about is broadening the base of monetization options for online video inventory,” said Clarizio. “Up to now, it has been largely…on a fixed-fee basis.”

Clarizio said many advertisers aren’t happy about fixed fees. “There are a lot of advertisers that want measurability,” she said. “They want accountability in terms of the advertising they purchase. Now, we’re giving them the ability to get that in video as well as measureable results.”

Performance Video gives advertisers in-video formats and pre-roll inventory placement designed for direct-response advertisers as well as for brand advertisers, said Clarizio.

Performance Video doesn’t require professionally-produced commercials, so it should be attractive to all levels of advertisers, she said. That includes publishers of professional and semi-professional video content who’ve been struggling to make some revenue off the content.

“This is not an offering that is necessarily geared toward user-generated video,” said Clarizio. “The whole goal, just like in display, is you want to broaden the ability of advertisers to just come in and advertise.”

Advertising.com isn’t alone in its attempt to provide a CPC-based method of direct marketing in online video. For example, Adap.tv, a video ad platform launched last May, aims to give direct-response advertisers a shot at riding the online video wave.

Adap.tv’s platform allows products from e-commerce databases — such as those maintained by Amazon and Shopping.com — to be displayed while video clips from Metacafe play.

Advertising.com’s new product employs a 5- to 9-second videos or Flash-based animations and is streamed within an in-player video environment. In a statement, the company said it believes this set-up “lays the future framework and foundation for advanced video targeting, new advertising overlays and additional performance measurement tools” in all video players.

The product uses the company’s AdLearn delivery optimization technology, which Advertising.com uses in its display ad networks. “It really looks at all the available ad impressions in the network and it optimizes the delivery of those impressions to where it is most likely to achieve the advertiser’s objectives,” said Clarizio.

Advertising.com is part of AOL’s Platform-A ad business.

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