In September, Yahoo had more than 800 million monthly unique users. The targeted video ads could be rolled out as early as Q4, according to Pavia, and Starcom clients like Allstate, Kraft, Kellogg’s, Hallmark and others are potential launch partners.
Yahoo recently partnered with Viacom when it launched a new app, Yahoo Screen, that enables users to browse through video clips and online shows similar to the way people switch between TV channels.
But as Ad Age noted, Yahoo has made few deals with media agencies since Marissa Mayer took the helm. Under Mayer’s leadership, Yahoo has dedicated much of its focus to product development and acquisitions.
As Yahoo pursues increases in user engagement and traffic, it has seen its ad revenue drop. The company reported a 7% decline in revenue from its display ad business to $470 million between Q3 2012 and this year’s third quarter. During the third quarter, search ad revenues fell by 8% year-over-year to $435 million.
Yahoo’s deal with Starcom could be part of the company’s attempt to strengthen its bonds with advertisers and boost revenue. Snyder declined to comment on whether deals with other media agencies are in Yahoo’s future.