Video startup YuMe Networks released a set of new products Monday aimed at providing sponsors a range of options in the wide open online advertising space.

“Our opinion is it’s highly doubtful that just one ad format is going to be right for video,” said Jayant Kadambi, CEO of Redwood City-based YuMe.  “Watching a two minute trailer on mobile you’re not going to want the same ad as watching it on television.”

With ad dollars moving online and the popularity of online video skyrocketing, marketers are increasingly interested in the space. Online video ad spending is expected to rise from an estimated $775 million this year to $4.3 billion in 2011. (See “The Web-Video Ad Puzzle.”)

Typical Internet video ads run as "pre-roll" clips, akin to television commercials, but many viewers consider them an annoying interruption that they must endure in order to watch their selected clips. As a result, a growing number of companies are developing new ways of advertising in, on and around online videos.

A wide range of companies are experimenting with ads such as logos that don’t necessarily interrupt the video unless a user clicks on it. These are known as overlays, bugs, or tickers. One such new YuMe product is an “interactive overlay,” which places branded items, such as a small car driving on the bottom of the video that can be clicked to go to a web site.

Other new YuMe products include a customizable video ad, which can change the pricing on-the-fly and also change the retail partner—for example from Best Buy to Circuit City—depending on the viewer’s geography, demographics, and whether the ad is served on a PC, mobile, or TV.

The wide range of options allow for ads to be delivered across a variety of platforms—television, computer, or mobile device—which all have vastly different screen sizes. 

Finding a way to more smoothly integrate ads into videos is one objective of marketers. One new YuMe product overlays a “watermark” of a brand over video content. For example, on a trailer for the movie Spiderman, you could have a Blockbuster logo with information on renting or buying.

Another new YuMe option is a branded player—known as a “skin”—which wraps branding around video content. Other companies including video site Heavy.com and WPP’s Ogilvy Interactive have also used skins.

To take advantage of the viral, user-generated content craze, another new YuMe product allows users to customize an ad. In one demo, a user can create a greeting card from Hallmark and customize it directly in the video player.

Other new video ad formats include San Francisco-based VideoEgg’s “crawl,” which resembles the news ticker on the bottom of the video.

YuMe, backed by Kholsa Ventures, Accel Partners, and BV Capital, streams over 100 million videos per month, Mr. Kadambi said.

The company focuses on the so-called “middle” part of the online video market, targeting the clean professionally-produced content—though not necessarily the most expensive television broadcast content. YuME allows advertisers to choose specific “channels”—such as sports or entertainment—of content to place their ads on.