Jivox, an online video advertising platform, has reported a revenue growth of 400% in Q2 of 2010 as compared to the same quarter in 2009. Jivox had earlier in the year raised $4 million from Helion and Opus, and in the following month tied-up with HT Media which allowed the online video advertising company to post ads on HT Media’s online properties which include HindustanTimes.com, LiveMint.com, and DesiMartini.com. Naren Nachiappan, Managing Director India at Jivox, believes that advertisers prefer interactive online video ads as compared to online banner ads or TV ads. Mr. Nachiappan’s claims can be verified by a study by Nielsen which are shown in the chart below:
As the above graph suggests, online interactive video ads have a better value for money as compared to TV ads.
Competitors in the online video ad space
As of now, the online video ad space in the Indian market is controlled by Vdopia and Jivox. In October last year, Vdopia raised $4 million as well from Nexus Venture Partners. With both these companies getting funding, the interactive video ad space online was bound to grow and the growth by Jivox in Q2 is a testimonial to that point.
Future of online video ads
The potential for such advertisements are immense. With the arrival of 3G services, more and more people can download videos at faster speeds and thus will only increase the popularity and effectiveness of such ads. The interactive nature of the ads also ensures consumer participation and subsequently brand recall.
With Jivox’s growth, one thing is certain that online video ads are the next big thing that advertisers and publishers alike will try to capitalize on. What is you take on such interactive online video ads?