Online news source Video Ad News recently conducted an interview with Ed Haslem, senior vice president of marketing at YuMe, an online video advertising firm. The purpose of the interview was to discuss the release of YuMe’s Household Targeting ad service.
Haslem explained briefly what the service provides:
“In a nutshell, Household Targeting delivers 100% in-stream, interactive video ads to all screens in a household – smartphone, tablet, CTV, PC. By utilizing our Connected Audience Network these ads will reach more than 147M video viewers per month, in the United States.”
How does the service work? It uses complicated “heuristic algorithms,” as Haslem calls them, along with other processes that normal humans like myself could not possibly understand. The main point is that the service looks to close the gap that exists between online video and TV advertising, insofar as household exposure. Online ads, unlike those on TV, are usually only seen by a single family member at a time, giving TV ads a marked advantage.
Haslem said brands that would likely use YuMe’s service are those that already use TV ads heavily: cars, movies, restaurants, travel, etc. Because these brands routinely include an entire household in the decision process (unlike, say, buying a set of golf clubs for Dad), adding online ads with family-wide exposure makes perfect sense.
YuMe plans to go public soon, as it filed for a US$65 million (S$82 million) initial public offering earlier this month, which was higher than expected (possibly due to this new service). The company posted US$123 million (S$156 million) in sales for the 2012 fiscal year.
See full interview at VideoAdNews.com