There are a few levels of interactivity
1. Audience interacts by choosing what they view and when they view it.
2. Audience interacts by choosing what they view and when as well as interacting with the creators of the videos in the form of vlogs in many cases.
3. Audience effects videos
1. Choosing between certain pre-selected video components (Hoobastank video)
2. Choosing what happens next in the video (I heart vampires)
4. Mashups (Overlay.tv and Ooyala). creators add things to videos and audiences interact by clicking links to learn more about a subject or to purchase an item.
Interactivity that moves beyond clickable links within a video and allows interaction with the video or creator of the video has not been as monetizeable. YouTube, which allows you to interact with the video through clickable links, the creators of the video and the timing of viewing has had to make certain changes in an attempt to make money through advertising.
Interactive video has made it easier to impulse buy and to engage the audience which are two of the three tenants of new advertising.
Interactive video may be the direction new advertising is heading; but, I am not sure how interested people will be in watching these videos designed only to get the audience to purchase goods.
