As 2007 races to its finish, we still don't have a standardized video ad format, scalable ways to buy video inventory or pervasive technology to navigate and target (contextually or otherwise) the universe of user-generated content. But improved targeting, interactive functionality, distribution tools and creative maturation will take 2008's branded videos to new horizons. Look to tech companies like Panache and Freewheel.tv to provide some of that necessary infrastructure.

Digitas' Beeching concludes, "This is just a beginning. Interactive video will not be about video inside a web experience but interactivity inside a video experience."