VideoEgg

[ 2007.12.06 | Press Release ]

VideoEgg Helps Brands Shift Spending as Consumers Flock to Internet for Content

San Francisco, CA, Dec. 6, 2007 - VideoEgg, Inc., the leader in helping brands connect with people in online environments, is helping fill the vacuum media buyers are experiencing during the writers’ strike. Providing targeted, engagement-driven online video advertisements, VideoEgg is helping brands to navigate the successful transition to online advertising.

The writers’ strike, which began Nov. 5, is yet another stake in the heart of advertisers trying to navigate the changing environment. The internet now rivals television as the primary destination for content consumption. Sixty percent of consumers are online one to four hours a day, compared with sixty six percent of consumers who watch television for the same length of time[i]. Despite this change in consumption habits, advertisers continue to spend 5.7 times as much on TV advertising compared to online, revealing their TV dependency—an outdated and inefficient method of engagement.[ii] However, IDC predicts this will change and that internet advertising will grow to $31.4 billion in 2011, increasing its share in the overall advertising spend. [iii]

“Right now the industry has created what we call an online ad spending gap, where consumer attention outweighs advertising dollars online,” said Troy Young, chief marketing officer for VideoEgg. “With the current writers strike in full force the time is ripe for organizations to build new marketing muscle, and the winners will be the ones who jump in with two feet. We understand that scaling an online marketing competency is hard and are focused on making it easy for marketers to move TV money online.”

A protracted writers’ strike will increase usage of online media, making it even more difficult for brands and their agencies to reach consumers through traditional TV campaigns. Advertising online offers brands the ability to:

• Reach highly engaged consumers
• Get in front of large, targeted and engaged audiences
• Be highly accountable
• Generate higher-value advertising than any other method

“Brand advertisers will have to move more ad budgets into Internet advertising and in particular into video commercials to stay competitive,” said Karsten Weide, IDC analyst. “When budgeting time comes around, U. S. advertisers have to decide where to invest their marketing dollars to get the most ROI. Encouraging advertising clients’ decision to shift budgets onto the Internet is the fact that Internet advertising is more effective than traditional advertising: It can do anything that print-, audio-, or video-based media can do, yet it also allows for better targeting, is more accountable, and offers interactivity with consumers, allowing ads to lead directly to online purchases.”

VideoEgg offers targeting tools specifically for online environments to help advertisers pinpoint the consumers they want to reach. VideoEgg has over 15 million daily impressions skewed towards elusive TV demo and leading brands such as Puma, Hewlett-Packard, NBC, Ford, Sprint, Pepsi, Motorola, Canon, New Balance, and General Motors have looked to VideoEgg to deliver rich-media brand experiences.

"If the strike continues past mid-January, which it will if no progress is made in the next three weeks, marketers will be confronted by a clear challenge", said Jack Myers, Jack Myers Media Business Report. "In the face of inevitable broadcast network erosion and an inability to acquire compensating make-up inventory from the networks, will they search for more efficient alternatives?"

About VideoEgg, Inc.
VideoEgg, the leading video ad network for online communities, has developed an extensive audience network that connects brands and content owners with people through an invitation-based rich media approach to advertising. An advertising innovator, VidoeEgg was the first to commercialize interactive advertising overlays onto video, an approach that is being widely adopted by the industry. The Eggnetwork is comprised over 200 top video and gaming sites, social networks and applications, bringing outstanding consumer reach and a high level of engagement to its advertising partners. Founded in 2005 and based in San Francisco, with offices in the UK and New York City, the company is privately held and backed by August Capital, First Round Capital, Maveron, WPP and Focus Ventures. For more information on Video Egg, please visit www.videoegg.com

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All brands, names, or trademarks mentioned in this document are the property of their respective owners.

VideoEgg PR Contact:
Suzi Owens
Blanc & Otus
(415) 856-5125
sowens@blancandotus.com

[i]
Source: IBM Consumer Survey 2007

[ii]
Source: TSN Media Intelligence

[iii]
Source: IDC, June 2007