Video could be to the ticket for Microsoft. At least, that's the idea behind the company's decision to ink a deal with YuMe to place ads against some of Microsoft's video inventory.

The deal, which was reported in The Wall Street Journal, could signal what looks like Microsoft's post-Yahoo strategy. Since Microsoft lost its bid to capture Yahoo, which in turn struck a search deal with rival Google, the software maker has been on the lookout for opportunities in areas not dominated by Google.

Internet video, which has seen keen interest from users and advertisers alike, could prove to be fertile ground for Microsoft. While a slew of ad networks and publishers have been looking for a way to monetize the explosion of online video, the space remains wide open. Google, which also competes in video with its YouTube property, hasn't been able to turn its market lead into advertising dollars. Officials at Google have made monetizing video a top priority, and last week YouTube announced a program that would allow content creators to sell ads around their videos.  

As for Microsoft, its deal with YuMe should give the company access to more video advertisers. While financial terms of the deal were not disclosed, Microsoft could expect to increase revenue by letting YuMe serve its ads because of a behavioral targeting solution the company uses to determine which videos are likely to best resonate with users.