I spoke at the Digital Hollywood Conference at the Consumer Electronics Show (CES) on the “All Video-All the Time” panel. The panel covered a wide range of topics from value of content, video ad formats, business models to distribution platforms.

Here are the highlights of the conclusions we arrived at:

1. Niche and mid tail content will further develop and advertisers will recognize that this content attracts desirable audiences
2. Pre roll ad units will continue to be the most prevalent although new formats like overlays, branded players, and interactive rich media ads will gain traction
3. Online video advertising will continue to grow and 2009 revenue numbers will be better than expected
4. Advertisers will demand more accountability through performance metrics
5. Contextual advertising is key to delivering ROI and performance. Seeing increase in behavioral targeting requirements in advertiser RFPs
6. Cross platform delivery of ads in mobile, download and IPTV will gain traction in 2009
7. There is still scarcity in premium inventory. Brands will insist on premium inventory especially in the current market

I had the opportunity to challenge my fellow panelists on a few points. I was not as bullish as others about the growth of the paid subscription content model. The general population won’t pay for content, only a small subset for very specialized content. Second, I think most video traffic growth will result from distribution and syndication, for example on widgets. Lastly, I believe CPMs on guaranteed inventory from the top portals will drop more significantly than CPMs from premium networks as advertisers will make more buys from networks to cut costs and as they realize that they can work with technology providers like YuMe to reach specific audiences rather than purchasing specific content.

Gregory Chang

The biggest technology show of the year, the Consumer Electronics Show in Las Vegas, is just about over. If you’ve never been, it can be an overwhelming experience. Companies go all out to show-up one another on the show floor with their massive booths and enormous video displays.

YuMe did not have a booth at CES but I was there to speak on a couple of panels about online video and the changes that it’s bringing to the online advertising space.

On the show floors, companies such as Microsoft and Hewlett Packard used large video screens to showcase their products and services, new technologies that are giving the consumer control over the types of content they want, such as their networked personal library of videos, photos, and music. They’re also showcasing the growing number of video choices available on the Web, from network television shows to feature-length movies.

On Monday, I spoke on a panel called, “Advertising in P2P, Search, Social Media and other Web-Based Services,” sitting alongside others who are also seeing changes in this space.

It was an interesting session and, if nothing else, it just goes to show that this concept of alternative advertising is in its infancy. The alternative ways to get a message across – things such as Facebook “gifts” – are starting to grow and advertisers seem to be receptive to exploring new ways.

One of the things that allows YuMe to stand out in a crowd is its tools for tracking an ad. Advertisers need to know what happens to their ads online, things such as when they were watched and where they were watched – over a peer to peer network, via a social networking site, even over a mobile phone.

Increasingly, advertisers are being presented with new opportunities to put their messages in front of the right audience. As this space continues to evolve, YuMe is committed to help connect advertisers with content providers to give both what they need to move forward.

Jayant Kadambi