Google Tests Ads In YouTube Videos

Ads Appear At Bottom Of Video

Almost a year after paying $1.65 billion for YOUTUBE, GOOGLE is seeking some return on its investment, reports THE LOS ANGELES TIMES. YOUTUBE on TUESDAY unveiled a new form of advertising to cash in on its 130 million registered users, who watch 3 billion videos a month.

Dozens of other sites have tried ways to make money from the burgeoning popularity of online video. But YOUTUBE's size and influence could help its approach -- touted as less obtrusive and more effective than banner ads or in-video commercials -- become the industry standard. 

... touted as less obtrusive and more effective than banner ads or in-video commercials...

Here's how it works: Fifteen seconds into a music video for the band MADINA LAKE, an animated pink doughnut rolls along the bottom portion of the video with HOMER SIMPSON in hot pursuit. Viewers can click on HOMER to watch a trailer for "The SIMPSONS Movie" while the video they originally chose is paused. If they don't click on the ad, it disappears after 10 seconds. (Check it out here.)

The experiment, which has been quietly underway for several weeks, features ads on videos from WARNER MUSIC GROUP, FORD MODELS and LONELYGIRL15. YOUTUBE product manager SHASHI SETH said he found that this approach had a higher response rate than traditional display advertising; 75% of those who started to watch the ads kept watching until the end.

Some of the ads, such as one campaign from WARNER MUSIC, let viewers browse through covers of albums by LINKIN PARK, SMASHING PUMPKINS and LIL SCRAPPY from within a YOUTUBE video. Clicking on one of the album covers takes viewers to a website where they can learn about upcoming shows, watch videos or buy T-shirts and CDs.

« see more Net News