Google to Launch New Video Ads on YouTube

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During a television interview last week, Google CEO Eric Schmidt revealed that Google will soon be launching a series of new products for YouTube, in an effort to make its video-sharing service profitable.  Up until now, Google hasn’t been successful in generating income from the site, and getting the site to make money is the company’s top priority this year.

In the interview Schmidt declined to give away any details of the products.  However, he did say that the ads would be different.  The ads, he says, will become visible when a person is watching a video on YouTube, which is different from previous attempts at video advertising in which the ads typically appeared before or after the video clip.

“We have latest ad products that are not pre-roll and post-roll. Think of them as ads that use the page around YouTube in interesting ways,” Schmidt was quoted saying at a California conference recently.

The new ads are expected to be rolled out “over the next couple of months”.

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  • CT Moore

    I can see they might use “he page around YouTube in interesting ways,” but if that’s the way that they’re going, I can’t imagine how they’ll monetize all the view that occur on embedded players outside of YouTube without disrupting the experience that third party webmasters are trying to deliver to their users.

  • James

    I think it’s easy: you put a tab on the video that says “Advertiser supported” and the user has to click the tab to see the ad, even to see who the advertiser is.

    It’s in my opinion closer to the newspaper ad model which belongs on a choice medium, and in contrast to the pushier television and radio ad models that are products of more passive media, and is an idea that occurred to me May 3rd when I was looking over a YouTube video with an AdSense text ad on it, and started to ponder…

  • CT Moore

    I’m skeptical that advertisers would pay for such intensely permission-based advertising.

  • James

    If no one goes to the tab, then they wouldn’t be charged, right? So if the idea doesn’t work then they pay NOTHING. Zero. Nada.

    And this way EVERY hot video that goes viral can be monetized, just with a tab in a corner on a top bar (look at YouTube homepage now to see a video with a top bar), where people click on that to see the ad.

    Do you really think that in our curious world no one will ever check? (Ok, the incurious and those who truly despise ads with a hot fury that rivals the heat of the sun may never click.)

    But might you not wonder who is the advertiser for say, Wii Fit Girl if there were that tab?

    If no one would and no one would ever click, then the idea is worthless, if not, then you have the potential of monetizing every single video that draws enough viewers in YouTube’s entire library.

    So the question is, if you put up the tab, will the viewers click it?

  • CT Moore

    I agree with you that advertisers have would nothing to lose. I’m just worried that a model like that one wouldn’t be worth developing in the long run because there might not be sufficient revenues to cover the costs of running it.

    I’m sure for the first few months, there’d be a lot of clicks/impressions, but I could really see the consumer’s curiosity waning after that.

    Of course, this is assuming that ads are being targeted according to meta info. If advertisers manually choose what videos they want to advertise on, then I can see situations such as your Wii Fit Girl example really converting for both advertisers and publishers.

    However, sorting through all those videos could become very unmanageable for advertisers — although a very cool job for their interns. 🙂