NEW YORK When Revver started two years ago, it had a unique proposition: paying the creators of popular Web videos for their efforts.
The idea was simple: Revver's technology would place a clickable ad on the end of videos, giving creators 50 percent of the money produced by the clicks. Since then, however, the field has gotten crowded, with video sites like Break.com and MetaCafe offering awards, while others like Blip.tv and the newly launched Sony site Crackle also paying up-and-coming talent.
Now, Revver is tweaking its model in an effort to produce higher payouts for its stable of content creators, which includes the Lonelygirl15 series. It is adding both pre- and post-roll commercials common to Internet video sites. Revver CEO Kevin Wells said the impression-priced ads should attract $20 CPMs, producing bigger payouts for content creators than the direct-response CPC placements.
"It's obviously a competitive space," he said. "The good news is our model has been on track from day one. Nobody else has the network model and the creator focus."
Wells took over the CEO reins from Steven Starr last month. Starr remains chairman of the company.
Wells said the move to CPM pricing, favored by brand advertisers, was always part of Revver's blueprint. In November, it struck a deal with British broadcaster BSkyB to give creators a cut of text-messaging fees from BSkyB users texting votes for their favorite videos on a dedicated Revver-populated channel, Fame TV.
Revver will continue to offer direct-response placements, he said, possibly selling a mixture of a branding pre-roll spot followed by a post-roll call-to-action placement. Some of its campaigns have gotten 10 percent click rates, Wells said.
We've learned a lot through some of our tests," he said.