However, these efforts are like trying to open up the tap some more to fill a bucket despite trying to block the big massive hole in the bucket.

Veoh is going to try to target ads based on historical viewing patterns, which in theory sounds great, but in practice is unlikely to succeed because most of the content on these sites are untouchable.  Don’t take it from me, take it from these people, who say that UGC will only account for a mere 4% of online video advertising revenues.

Once you improve the quality and quantity of video content online, then advertisers will embrace the medium, until then, they will sit on the sidelines.