Keystream has launched SmartAds, a video ad model that "intuitively [locates] subject matter on the screen and [places] ads in blank spaces."

Ads will play for 10 seconds every minute or two. They can be targeted by demographic or contextually. Clients can also decide how often ads appear within a given video.

Ideally, each text ad shall appear in unobtrusive points in the video — a knoll of grass in the background, for example. Keystream believes this model will demonstrate itself superior to pre-rolls and overlays in terms of click-through.

According to MediaPost, the company conducted a test across 6000 videos of varying length, content and ad type. By and large, SmartAds generated click-through rates in the high single digits (that is, likely above 5%) and interaction rates of over 20%, Keystream execs claimed.

"We have not had any negative comment or feedback," boasted CEO Schuyler Cullen.

Ads come in three types: static logo, round clickable unit that enables messaging on both sides, and a rectangular expandable unit. They are sold on a CPM basis.