Video Ads Come To YouTube

Posted on August 22nd, 2007.

Google’s YouTube site will begin showing advertising “overlays” in some videos today:

YouTube’s new ads involve a semitransparent, animated overlay that appears at the bottom of videos during the first 20 seconds of play and then disappears after 10 seconds. Consumers can close the overlay before it goes away or click on it to launch an ad, currently a video of any length or a flash-animation ad that can link to a Web page. The click-to-play ad pauses the video in a kind of voluntary commercial break, and the video resumes when the ad ends.

In one example provided by YouTube, a Warner Music Group Corp. (WMG) video for pop-punk band Madina Lake’s song “House of Cards” includes an overlay ad for ” The Simpsons Movie” from News Corp.’s (NWS) 20th Century Fox that shows a rolling pink doughnut with Homer Simpson in pursuit. Clicking on the overlay launches a trailer for the film. Also, car maker BMW AG is testing two different ads, one featuring a television ad for its 3-Series Convertible and another as part of a cheeky “Relearn to Drive” campaign for its performance driving school.

It was only a matter of time, I guess. The question is, will people accept having adds mixed in with their content, instead of showing ads before the content starts as is the norm. With so many video sharing sites out there, YouTube can’t afford to drive too many users away.

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