Eyeblaster Incorporates In-Stream Video Ads

NEW YORK — Rich media advertising firm Eyeblaster has added a new feature to its advertising platform that allows in-page video banner ads.

Called “VideoStrip,” the new feature is designed to combat recent studies conducted by the Online Publishers Association that found the number one reason that Internet users don’t watch online video content is because they don’t know it’s there.

“We offer video in all of our standard ad formats as well as our VideoClip in-stream solution,” said Gal Trifon, Eyeblaster CEO. “The VideoStrip is the first of many new upgrades that we will introduce to leverage the power of video online.”

According to Eyeblaster, the video banner ads work by using a custom Flash component that presents a small section of “teaser” video within the banner. When a user rolls their cursor over the advertisement, the video expands to its full size, remains in sync and begins audio playback.

Microsoft began offering a similar solution called MSN Video in 2004, and was quickly followed by Unicast, which began testing video ads that required no special viewer on sites like ABCNews.com, iVillage and the Tribune Co.

Recent studies by JupiterResearch also indicated that online video advertising would surge over the next five years, rising from roughly $77 million in 2003 to $198 million in 2005 and eventually $657 million in 2009.

The surge in rich media advertising is due to a combination of maturing technologies, according to JupiterResearch analysts, including better picture quality and increased broadband Internet access.

“You can get ads next to Tom Brokaw or Katie Couric on MSN now,” said associate analyst Nate Elliott. “That’s something that wasn’t possible a couple of years ago.”

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