Posts Tagged ‘Microrsoft’

Pay per interaction video ads

February 21, 2008

Just as I had briefly mentioned about ads being sold on engagement, VideoEgg offers a pay per interaction ad model. It’s not excatly the same as paying a varibale rate depending on level of interaction, but it is a step closer. Rates range from around $.20 to$1 per interaction. They are defining an interaction where a user mouses over and the flash video clip loads.

As marketers still try and find a scalable branding solution online, performance based models dominate the online spend. This enables marketers restrained to only doing performance advertising like CPC or CPA to now look at video advertising. It will be interesting to see how this sticks and if large brand marketers adopt this model as it reduces their risk from the traditional CPM model.

Microsoft has been the first large advertiser to work with VideoEgg and the AdFrames product. They are currently paying less than $.50 per interaction. That is probably a lot better rate than they are paying for CPC terms.