Kiptronic, a company that launched to insert ads into downloaded podcasts, has announced it will do so for video downloads too.
It is just the latest in a never ending rush of new companies to partake of an expected jackpot totaling in the billions of dollars of advertising revenues. These ads will run alongside and within video ads — most of it yet to come.
While CondeNet, the Internet arm of Conde Nast (owner of Wired, Epicurious, Concierge ), is Kiptronic’s first big publishing customer, chief executive Jonathan Cobb told us this morning that Kiptronics has others that he can’t disclose.
Kiptronic deploys its technology on the server side, which means it does not require a proprietary, downloadable viewer to work on the user’s device. This is in contrast to companies like Delivery Agent, which has its own player to display ads next to videos (see Delivery Agent coverage here).
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More importantly, Kiptronic does not require any change in a content provider’s established methods of delivering content. Publishers simply add Kiptronic’s technology into the back-end of their content delivery system and it automatically inserts pre-roll, mid-roll, or post-roll ads as the video downloads. The flexibility lets video producers easily change which ads get inserted. Kiptronic has a partnership with Akamai and Liberated Syndication, so it can handle high volumes without any trouble.
With the power of product trends like the recently launched VeohTV, which makes downloading video from all over the web fast and simple, and the popularity of iTunes’ videos, ads for downloaded video could become a significant part of the video ad landscape, actually threatening the pay-per-download market. This market is expected to bring in $279 million this year, but may be at its peak.
There has been other action on the video advertising front in the last couple of days. DigitalSmith, a video contextual ad serving company, raised $6 million from The Aurora Funds and Chrysalis Ventures, and took the brand name Videosense from under Google’s nose.
Last December, we reported that Kiptronic had raised $4 million from Prism Ventures and Blueprint Ventures.
