Consumers may find pre-roll ads annoying, but they're still the highest-performing asset and the model favored by large TV advertisers, according to Jayant Kadambi, CEO of video ad network YuMe.
Kadambi says that overlay ads, which are banners at the bottom of the screen, perform-second best and get a good viewer response because they're non-intrusive.
According to a comScore press release, YuMe had 59 million unique visitors in the month of June and was ranked as the 32nd largest ad network in the country. (In the clip, Kadambi cites numbers that match up with comScore's initial press release, which has since been revised.)
We caught with him at the AlwaysOn conference at Stanford last month.
--Kelsey Blodget, Associate Producer
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I think there will be a huge demand for agencies who focus on the creatives for overlay ads, much like we are now seeing for pre-rolls.
I haven't heard of any one company that targets producing quality overlay ads, and I believe this will be a very ideal online video ad format within a year or two providing creatives can encourage viewer engagement.
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