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VideoEgg launches new video ad features

Web video advertising company launches five new kinds of video ads it hopes will be more engaging to users.

As reports surface that Google is struggling to make money off YouTube, Web video advertising company VideoEgg announced the launch of five new kinds of video ads it hopes will be more engaging to users.

The new features, as described Wednesday by VideoEgg, are:

• Live: Use real-time RSS feeds to continually update the ad experience
• Local: Deliver ZIP code-specific messaging
• Rich: Easily deploy and track a rich multi-video ad experience to increase user interactivity
• Shop: Bring the browser to the user, merchandising multiple items in a single real-time ad experience
• Share: Viral capabilities help spread the message through virtually any communication or social channel

VideoEgg said the new features are designed to increase viewer engagement. The ads are served up for free, and advertisers are charged only if viewers engage with the ads. The pricing model is called cost-per-engagement, as opposed to the number of views or clicks an ad receives.

Since the model was launched four months ago, more than 50 brands have used the network, including Microsoft, Comcast, and Disney, VideoEgg said.

"The ad experience is ripe for innovation," Troy Young, VideoEgg's chief marketing officer, said a statement. "We need to replace the banner with portable media experiences that leverage the power of video, feeds, maps, and localization. We can get consumers to engage--we just have to make online advertising more interesting."

The announcement comes on the heels of revelations that YouTube has been plagued with inefficiencies in its ad-sales department. YouTube will generate about $200 million from ad sales this year, short of Google's expectations, according to a report in The Wall Street Journal.

VideoEgg was the subject of shutdown speculation in April after the San Francisco-based company announced that it would stop hosting videos uploaded to the site by the public and to scale back hosting services on the VideoEgg Publishing Platform.

Founded in 2005, the 100-person company has yet to turn a profit. CEO Matt Sanchez told CNET News in April that the company had no plans for staffing cuts and would just "refocus" some employees.