Videoegg offers 'per engagement' pricing

Called AdFrames, the new offer allows marketers to pay for rollover ads on VideoEgg's Eggnetwork branded ad web based on the figure of user-initiated ad interactions that occur on spouse sites, instead than the CPM-based approach that business relationship for the bulk of online brand ad now. VideoEgg specializes in ads that appear in video clips and Facebook applications.

VideoEgg is request marketers to cough up 75 cents per battle on the so-called "brand response network." "battle" is by and large defined as a user-initiated rollover action that consequence in a sustained ad enlargement. Once expanded, an ad may contain a video, game, or other of rich content. It happens without pickings an net user away from her preferred Web page, and marketers only pay when an person completes an action.

It's up to VideoEgg to optimize the arrangement of so-called "invitation ads" to warrant the requested number of battle in an advertiser's target demographic, said Matt Ilich Sanchez, VideoEgg president and CEO.

"They're buying a specific demo and figure of battle and we're pickings the risk on delivering that amount of attending," he said. "That's a layer of complexness the advertizer never has to worry about."

Launch partner Microsoft is using the offer to promote its business office 2007 suite using a long-form video starring comedienne Amy Sedaris.

AdFrame ads will appear on sites and Facebook apps where VideoEgg represents in-page display ad stock list. Included are Web-based IM platform Meebo and the "canvass pages" for Facebook app owners like Flixster and RockYou.

Jeff Lanctot, VP of media and client services for Avenue A/Razorfish, said VideoEgg's pricing model appears to be a fluctuation on cost per click pricing. He added it's high time for such an approach vis-à-vis brand marketing -- and for more experimentation around video ad serving and pricing in general. In an era where many have called for more standards around online video ads, Lanctot said, "I'm one who says let's wait."

VideoEgg's Sanchez agreed, not surprisingly. He added traditional approaches to video advertising are particularly lacking when it comes to apps on social networking sites. "Going with standard IAB [Interactive Advertising Bureau] display units is not a compelling solution for this new media landscape," he said. That's literally true in the case of Facebook, he added, where "the canvas page is narrower than Facebook page" and hence can't accommodate many IAB standard units.

Originally known for its in-video overlay ads, VideoEgg now derives fully half of its business from ad representation in apps, CMO Troy Young told ClickZ in January. He said the company earns gross revenue of approximately $1 million a month from its app-based media sales, totaling $1.5 million in total payouts to app owners.