AFI BLOG: Media and Technology

VideoEgg: Rich Media Ads, Pay Only When Users Engage - TechCrunch

Videoegg, the one-time video startup that sort of competed with YouTube and sort of competed with BrightCove (very different companies), has basically transitioned itself into a very robust rich media advertising network. In August 2007 they started selling ad units for Facebook applications. Since then they’ve expanded to include advertising for many other sites, including Meebo, Flixster and others.

Today at an event in New York they’ll announce a business model change, moving away from charging advertisers a cost per thousand impressions (CPM) for their display ads to a new model where advertisers pay only when a users has engaged with the ad. The new product is called AdFrame Brand Response Network - quite a mouthful.

Engagement is defined as clicking on the ad, or hovering over it for a second or two. Once that happens, a new Flash overlay pops up over the content on the page and shows a video, Flash game and other content. Once the Flash overlay is triggered, the advertiser pays a fee of $.50 - $1.

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