Video start-up Blinkx will begin to offer a system that matches video advertising to video content based on specific words spoken within the content, according to Business 2.0. The move flanks Google’s (GOOG) text adword business by bringing a similar system to video advertising which is the fastest growing marketing category on the internet.
In the word’s of the Blinkx CEO: "You need something akin to AdSense for video, which is what we have built."
The move may hurt Google, which must be hoping that it can offer a follow-up service to its Adsense text program. Text advertising has been growing much faster than the display ads common on websites like Yahoo! (YHOO), MSN, and AOL. While the text category has grown faster than display and has become the engine for Google’s share price increases, it too will eventually begin to reach a wall when its revenue base is so large that it cannot grow in the high double digits. Video linking might have been a partial solution to diversifying Google’s system.
If the Blinkx offering works extremely well, it is a sure bet that it will not be independent for too long. The technology and potential revenue behind it has a great value to Google, Yahoo!, and other large internet operations.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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