Over the past few days the discussion around who "invented" video overlay ads has reached a new level of, well, intensity Videoegg greeted YouTube’s announcement with a gutsy positioning "welcoming YouTube" to the format, which provoked a response from Jeremy and the discussion devolved into this (you can see my comments here).
While Videoegg’s response to YouTube may have seemed a bit silly, it helped create a debate (admittedly with the help of someone looking to start a debate) in which Videoegg is mentioned in the same breath as YouTube and Brightcove.
The interesting thing here is not the debate over the overlay ad, but, given that there are an infinite number of potential formats for ad units in digital video, why anyone would focus on the format itself. The challenge for Internet video is to make new saleable ad units, and that requires participation from major stakeholders- consumers, agencies, and advertisers. The divide between the what is technically possible with Internet video and what is being bought by advertisers is vast- and the energy around something as seemingly simple as an overlay ad only highlights this gap.