The mobile ad market seems like a ground-floor opportunity for Destiny Media. They already has good connections with large advertising companies, like the Japanese giant Dentsu the second biggest ad agency in the world. Here is CEO Vestergaard again in an interview published in the Augustus issue of the ‘How to find big stocks’ newsletter:

I presented an early demo to Dentsu in their offices in Tokyo in February and they were quite excited, but we haven't done demos since.

The newsletter then interjected its own conclusion:

because DSNY already has a working relationship with Dentsu AND they have seen a demo of G2, we feel they will be one of DSNY's first licensing deals. Having the 2nd largest ad agency in the world utilize G2 would immediately validate the technology

But this was several months back, when the technology wasn’t quite ready yet. But now that most of the tweaking is done, sales can start. What are the opportunities? In the November 2012 conference call, CEO Vestergaard mentioned a number of these:

First category is oddballs. That's everything from licensing to hardware manufacturers to integrating into third party software and that sort of thing. Those are all going to be custom priced.

The second opportunity would be going to the big ad agencies. So imagine on McDonald's I want to put a TV commercial on a website. I can go through an ad agency that's using Clipstream G2 and I can just drop that ad into a web server, just a standard web server, and I reach across all the computers, but I also reach smartphones.. So the people that are hosting the ads are going to make more money because 100 percent are going to view it, and it's going to be a better experience for the advertiser because it's going to be instant and cross platform and everybody's going to get the same experience.

Video advertising is projected to more than double, approaching $9.06B in 2017 from $4.14B this year, so this is obviously a tremendous opportunity:

This isn’t so surprising as video ads are way more immersive. According to an AOL survey;

digital video ads beat out TV ads for achieving engagement goals [eMarketer]

The main reason for that is that targeting is considerably easier and more precise on the internet compared to broadcast tv. The better the ads are targeted, the less intrusive they become. Ads should essentially be targeted with the same precision as Amazon’s recommendation system.

Combining two strong trends?

Video ads could be especially big on mobile devices, as advertising has yet to take a more definite shape on smartphones and (to a lesser extent) tablets. In this way, the big emerging trends of a shift towards video ads and a shift towards mobile devices could be combined to form a powerful trend.

Needless to say, there are already many more mobile devices than computers, and this is only going to grow. People increasingly access the internet through their mobile device.

mobile advertising’s biggest problem: Publishers simply haven’t figured out how to sell it. [Digiday]

Should one have dedicated salespeople and/or sell different formats for different devices? That seems inefficient. Enter video ads with the widest cross-platform support, that is Destiny’s Clipstream G2 technology.

Clipstream launch appears imminent with all barrels blazing. www.clipstream.com Check out the banner of advertising firms that are using (or have demoed Clipstream G2).