23 August 2007
Investors have had itchy feet after the $1.65bn buyout of YouTube last autumn. In order to reassure them, Google have adopted a refreshing new advertising model for YouTube which means that when a user views a YouTube clip online, a semi-transparent ‘overlay’ ad appears in the bottom of the video window.
Google are fairly confident that overlay ads will be between five to ten times more successful than current ad formats on the YouTube website.
Yes, there is a risk involved that users may turn to an alternative ad-free zone, but users can close them down easily and continue with their video. Alternatively, by clicking on the ad, the video will be automatically paused while the full ‘in-video’ ad is launched.
Google's director for media platforms Eileen Naughton comments:
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.
A restricted beta launch will let people ‘acclimatise’ to the new format before rolling out to the ads on user-generated video clips.
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