VideoEgg partners with advertising giant WPP

Videoegg, a video milddleman and growing video ad network, announced today that WPP, a huge advertising and communication service group, has invested an undisclosed sum in the San Francisco-based startup. In September of last year Videoegg received $12 million in capital when they announced the launch of their video advertising network which they have since implemented across 60 sites. The network is trying to do for video ads what AdWords did for text ads.

The investment connects a very innovative online video service network with a large communication service group that has experience in nearly every form of advertising under the sun. While they will be competing with video and advertising giants in the form of the rapidly expanding GooTube, Videoegg has a variety of technology partnerships and steams videos for the likes of AOL, Bebo, Hi5, and MyYearbook.  Videoegg’s previous funding round was led by the Seattle-based Maveron and joined by previous investors August Capital and First Round Partners.

When this revenue will trickle down and connect advertisers with talented vloggers is yet to be seen. But is it a seemingly valid way to monetize online video in a broad sense?  It is great to see more models of potential profit sharing between video creators, hosts, and advertisers.  But, who is going to attach an ad to the end of the likes of this video?


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