I had a brief chat with Sorosh Tavakoli, the CEO of VideoPlaza – a Stockholm based Swedish startup, about how they are helping to monetize online video. YouTube, among many others, has proved that online video is definitely a big winner in the way people decide to spend their time online. However, as many media companies have shown – the single most important problem remains; how do you monetize this in a proper way?
VideoPlaza set off with this in mind when the company was founded in August 2007. They currently have a licensable platform for serving, managing and presenting ads in online video content. The technologies they use are either Adobe Flash or Microsoft Silverlight. They charge their clients with a single startup-fee and a scalable fee based on served ads and bandwidth. VideoPlaza states Kanal5, WarnerBros, Opel, H&M and Arla as their current clients as a proof of big clients approving their products.
Sorosh was in the UK during the European Summer holidays and networking with local agencies and companies working with and around online video. He writes in his latest blog entry that the UK and Swedish market are very much alike and “a lot will happen in the next two years”. He also states four dominant charasteristics that pretty much sum up the current immaturity of the market: 1) Pre-roll domination, 2) Confusion on monetization, 3) Lack of ad format standards and 4) Inadequate metrics and reporting.
He doesn’t want to reveal too much regarding his plans on UK, but he is currently in talks with several large publishers and I’m sure we’re going to hear some news from VideoPlaza during the autumn.