Tuesday, April 04, 2006

Another YouTube: This Time with an Ad Model

Business 2.0 has a write up of another citizen-share media outlet called Veoh, similar/indistinguishable from YouTube. These guys seem to have a fairly clever approach to making money off the thing, though. They are building in a recommendation engine, along with a downloadable player application. Essentially, they are heading down the behavioral targeting path.

Yes--BT. I have said that BT is on the cusp of breakthrough for the last few years. With Claria's more formal foray into the market, along with the rise of applications like this, I think it may actually happen. The problem with BT is that the promise alwasy seem to be there for advertisers, but the execution tended to either confuse them or seem like too much work. Perhaps the tide is turning now on this, as advertisers continue to seek out more and more inventory?

An interesting twist on this is the approach that Veoh seems to be taking, at least in the article. They talk about the algorithms that they are setting up for the targeting of ads and content--it seems like it is starting to move toward being a real measurement and programming tool. I wonder if their designs are partially on the networks, but also on the measurement services? Eventually, there will be a critical mass of consumers watching content online. When this happens, can we begin to call this group a panel, measure their behavior (precisely) and use these as show ratirng...and a tool in the pricing of ads, both online and off?

This is the metrics marketer approach: the observation of realtime data to put into the marketing strategy, and that is one of the significant developments of the digitization of marketing.
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