There are over 100 Million view of YouTube videos monthly. Every media company (look at CnnFn, Fortune, etc.) is now providing video content for viewing online in addition to their text.
A good percentage (undetermined but at about 40%) of this video is user generated. Now these users are passionate, happy people, but the big need is to monetize all this video watching & production. Users who create these videos would LOVE to be paid for their fruits of labor. There are several mechanisms ranging from OLD to NEW.
Old: CNN and MSNBC use the Pre roll (AKA the 15 second spot BEFORE the real content is shown, they play an ad for 15 seconds. Why is this old – It follows the TV 90 second spot model. Its INTERRUPTION based advertising.
Older: 15 second Post roll. I believe Metacafe tried this and it does not work.
Relatively New: Google with its Google Adwords for Video. The placement of ads is on the bottom of the screen a “clickable” area with ads relevant to the tags in the video. You can BTW, close that Ad bar.
Truly New: A host of small companies trying to create Interstilial Ads. Ads that take up either Dead space on the video or Ads that are product placement ads on video that’s been created. These are meant to be “made to seem as if its right in the video.
1. Elucid Media
There are more that I met with (who are in stealth mode). Regardless of number of entries, this space is HOT. I’ll give you a more detailed review after I get a chance to view these offerings in detail.