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: they provide their customers with a template or an easy Do-It-Yourself way to create the video advertisement. And finally they help their customers by placing the advertisement. Another way in which Jivox is differentiating itself is that it is targeting the small business segment.

What is the difference between Jivox and Google I asked Diaz. His answer: “We provide true self-service for video advertisers to help them create and place video ads online. We work with Google and other ad networks to deliver the ads.” He adds that they already have customers in India like Bharat Matrimony, eBay India and in the USA their customers include PrincessPort, Faultline Brewery, Ciao Bambino Travels and others.

What is clear after talking to Diaz is that there is a huge potential in this space and each startup is addressing the market in a different way and trying to come up with a viable revenue model. The question that comes to mind then is this: How big is the industry? eMarketer estimates that the US market is about a billion dollar today and could be over $10 billion by 2010? How big is the market in India? It is difficult to gauge given the nascent nature of the business, but the market is bound to grow significantly if the broadband issue is addressed in India.

There is no doubt that multimedia is the next wave in the online world, but this is a very complex process. Video creation and delivery is just the start of this complex process that involves content management and delivery systems to what kind of format the video should be, or what kind of media player is needed, to where should the advertisement be placed? Then comes the question of how do you monetise it? Some analysts point out that it is still too early to say where this is headed, given that there is lot of unfinished work in this area like standardisation of video format etc. But the good news is that there is progress being made to address these standardisation issues. Recently, the US-based Interactive Bureau of Advertising (IAB) outlined its guidelines for digital ad video and best practices.