Blinkx’s solution is appealing because, as a video search engine, they’ve already striven for relevance in their video search results. Now they’re just extending that relevance into advertising as well. Blinkx indexes dialogue in video as well as accompanying text to determine what a video is about–and what ads should be served alongside it. Erick Schonfeld of the Next Net got to see a live demo of the product and its various ad models. He was most struck by one in particular:
Of all the ad formats that [Blinkx CEO Suranga] Chandratillake showed me on a recent visit, the one I think that may best strike that balance is an advertiser index. It is a clickable list that appears after the video of every product or service mentioned in the video, as determined by Blinkx’s algorithm. It’s sort of product placement-plus. Advertisers wouldn’t even have to strike deals beforehand with whoever made the videos. They could just find all mentions of their products and advertise against them.
This latest move could do more than just strengthen their stock prices: how appealing do you think this latest development will be to the big three? Or will their partnership with Ask preclude a deal with Google, Yahoo or MSN? Google just announced major improvements to their video search last week; might this keep them from purchasing Blinkx in favor of developing their own solution?