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Video Sharing readies to make money

By Vivek | May 14th, 2007 at 12:52 pm ET         

It is right about time that video advertising started getting the kind of attention it needs. Lately VideoEgg has emerged as the leader of sorts in the non-Google controlled interactive video ads word venturing deep into social scene of Bebo and likes. VideoEgg has couple of more startups moving in quickly to share it’s load and revenues.

First is ScanScout, about which I had written couple of months back. ScanScout today announced that is has raised $7 million in its Series A round of funding. The investment was led by General Catalyst Partners with participation from existing angel investors, Ron Conway and First Round Capital. ScanScout had raised $2.3 million in angel funding last year.

Other startup to emerge is Gemini Partners backed Adap.tv that has already partnered with Metacafe for it’s online video ad network.

Both the startups claim to be looking at speech streams to deliver contextual ads. While the format of ads might differ in both the cases, they would ultimately be looking at the same target market. Either way It will be interesting to watch who gets the loins share of the market.

As compared to both of these startups, I am amazed at the very low standards set by Google in the ads it has started displaying on YouTube last week. With more then a billion spent on the buyout and millions spent on bandwidth, server, and people, YouTube is far from being the kind of dream Google had put in the money for. That combined with the inability to monetize the streams since the buyout reflects the snails pace stuff has been happening at Google. Now, I don’t really expect Google to signup for ScanScout or Adap.tv service to deliver ads on it’s video properties. What that means that while Metacafe, Bebo and likes make the bucks, YouTube throws away everything virtually for free. In the longer run, this would result in a drastic shift in how video startups are valued. Next-gen leaders in online video space would be defined by the one who can gets the dollar machine moving faster and not just by amount of bandwidth it burns(not to mention - the long list of lawsuits).

2 Responses to 'Video Sharing readies to make money'

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  1. Mk12340 said,

    on September 13th, 2007 at 3:06 am

    Flicksharing is a social video website with a revenue sharing program that pays its users through Google Adsense. How does this work? After signing up for a free account, insert your Google Adsense publisher ID, which will allow ads to be run 50% of the time when your videos are viewed. Start uploading videos from websites such as Youtube, Google and Yahoo video.

  2. silent said,

    on November 30th, 2007 at 12:23 am

    I just found another shared video based social network www.sharerevmedia.com that allows users to earn ad revenue through Google Adsense and from other Advertise network. You can Share your blogs, profile, videos, music, pictures and you will be rewarded by www.Sharerevmedia.com.

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