Time Warner has invested an undisclosed amount in video ad startup ScanScout; last spring the Boston-based company raised a $7 million Series A from General Catalyst Parters, Ron Conway, and First Round Capital. ScanScout’s primary pitch is that it can automatically place advertisers next to contextually relevant and/or acceptable video.
We’ve heard good things about ScanScout. But the company’s core business also underscores a significant problem for the Web video industry — as we’ve noted earlier, a lot of online video inventory won’t be attractive to advertisers. “We are finding that for a lot of video — plus-50 per cent of the video streams out there — there’s not an appropriate ad to serve,” ScanScout CEO Doug McFarland told NeeTeeVee’s Liz Gannes last week. NewTeeVee
Related: Economics Of Online Video 2: Unit Cost Structure
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