It’s been a back-and-forth battle for second-place in online video between Yahoo and Fox Interactive Media. In February, MySpace-fuelled FIM toppled Yahoo and gained video share. But both are still a fraction of YouTube’s 42% share of the market.
Will Yahoo swing back this month and take second place from News Corp.’s (NWS) FIM? Rebecca Paoletti, Yahoo’s director of video strategy, thinks she has a good chance.
Why? The company relaunched video.yahoo.com during the third week in February, putting all of Yahoo’s videos in one unified location. Yahoo is carrying clips and highlights from CBS’s (CBS) hugely popular NCAA basketball tournament later this month. And it’s rolling out new video content this month, after debuting none in February.
The broad strategy: Replace music videos — where eyeballs have drifted to MySpace, Google’s (GOOG) YouTube, etc. — by cutting more deals to distribute TV and professional video clips, as well as funding its own original video channels.
To make money off that content, Yahoo (YHOO) has introduced two new video ad formats and is developing a third via its acquisition of Maven Networks last month. The first format: Clickable pre-roll ads, added in November. These are basically repurposed TV ads with a button so viewers can respond to the ad. The second: Expandable banner ads, launched in February. When clicked, these banners — positioned above or below video — expand and play a message. The third, coming in a few months: A roll-out of Maven’s semi-transparent overlay ads, which run directly on top of video.
Paoletti says she’s seeing CPMs on professionally created video in the $25 range and higher, depending on the level of targeting.
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