VideoEgg Dying a Slow Death?

“I don’t use VideoEgg anymore.” Just hours into the Graphing Social Patterns East conference, I have heard multiple developers tell me how they no longer use VideoEgg to fill their inventory. The problem? Same as it was 12 months ago. VideoEgg doesn’t have enough inventory to fill the massive demand for it. It also happens to be the same problem I wrote about this morning: the demand is practically limitless.

Initially VideoEgg was known for their great CPMs (cost per thousand impressions) but even that has begun to dwindle toward the $1.00 mark. To add fuel to the fire, VideoEgg has around 100 employees which helps them burn through their $27 million in funding. As it should be, most of their employee base works on the sales team. So where is their sales team located? Not in New York, London or L.A. where the advertisers are. They are working out of their office in San Francisco.

The company surely doesn’t need an extremely large sales team to go pitch the San Francisco Giants. I shouldn’t be completely down on the company though. They have an amazing ad system and some of the dynamic ads that they display have incredible quality. Take a look at the VideoEgg website to see examples.

VideoEgg has a short amount of time to get their team under control though. The company has hired a team of people which aren’t able to produce as far as I can tell. Every developer I’ve spoken with has dropped the company due to their inability to fill inventory. In a world where the ad companies must satisfy developers, VideoEgg is failing and despite their substantial funding they have already damaged their reputation. Do you think the company can be saved?