Advertising models for web videos are still evolving. Youtube still doesn’t have an effective way to monetize all their video streams. This is one area ripe for innovation. Whoever can solve this problem will be hughely successful. I track this area closely and will keep posting the latest developments as they happen.
Here is one interesting approach. A startup company called innovid has developed a technology that allows virtual product placements inside the videos. For example, the walls of a room can be changed to a theme of a brand say coca cola. And they are clickable. Checkout this video: