Investor's Business Daily: Google Helped By Rise of 'Performance' Display Ads

For video-performance-based ads, the big hurdle is the same as with any video ad, cost and wherewithal.

"The immediate hurdle is the production of the video itself; not everybody has those capabilities,"said Michael Shehan, CEO of SpotXchange, which specializes in placing performance-based video ads.

Still, Shehan says advertiser demand is rising for such ads.

He says his company's revenue has doubled in the past year as advertisers have discovered they can target their ads to specific types of audiences - certain age groups, for example - and they don't pay unless someone watches the video ad.

"Advertisers know that if they get a person to click on their video ad or interact with it in any way, that person is more likely to buy their product,"Shehan said.

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