Feeds

Google will carpet YouTube with 'overlay' ads

Not for user generated content....yet

The Power of One Infographic

Google will introduce a new advertising model for YouTube today which it reckons will be five to 10 times more effective than existing ad formats used on the video sharing website.

From today, semi-transparent animated "overlay" ads will show up at the bottom fifth of the video window for a few seconds when a user views a YouTube clip.

By clicking on the ad, users can see it in full with the original video being paused while an "in-video" ad launches. It can also be closed manually by the user or will simply expire automatically.

The new model is part of Google's attempt to ease investors' worries following the search engine giant's $1.65bn buyout of the video sharing biz last October.

Much of YouTube's success was built on a model that shunned commercialisation in favour of users sharing personal, and often copyrighted content, so finding a way to monetise the service without alienating the site's users has proved a big headache.

The concern for Google has been that encumbering the video site with ads could see its 100 million users log off in droves as they go in search of an ad-free alternative.

But it claims overlays will keep the "user community" happy while allaying investors' fears.

Google has been testing a number of formats with advertisers and big name content partners including Warner Music and BMW over the past few months.

It said the research showed that users were five or ten times more likely to click on and view overlay rather than banner ads.

Google's director for media platforms Eileen Naughton said: "What we have come up with is a user-controlled ad format that is engaging.

"We want our users to be able to accept and choose what type of advertising they engage in."

For the time being it said the ads will only be placed on video clips of its content partners, which include more than 1,000 small and large media firms that have videos licenced to YouTube.

Profit will be split between the media partner and YouTube and Google will charge advertisers $20 for every 1,000 times ads were shown.

Naughton said the restricted roll out will allow marketers to "acclimatise" to the new format before a decision is made on whether or not to the use the ads on user-generated video clips.

But, if it does get the full go ahead, one potential drawback of the new model could see big name firms having ads run alongside content they do not approve of. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.