AOL Buys Online Video Ad Co.

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As if we needed more proof that online video is becoming a vital part of media company strategy in ’06, America Online pulled the trigger on Lightningcast Inc., a small company that “specializes in inserting advertising into video clips.”

AP via newsvine:

NEW YORK — AOL LLC, signaling the importance online video will play in drawing visitors to its ad-supported Web sites, has purchased a small company that specializes in inserting advertising into video clips.

With the technology from Lightningcast Inc., AOL would be able to run targeted ads within video and even change ads from time to time without replacing the entire video file. Lightningcast’s technology also can insert ads into audio clips.

We’re still wondering if there’ll be a consumer backlash against companies that muddy clips with ads, or if and when You Tube does it.