YouTube testing AdWord-like video ads
YouTube has begun testing video ads that are targeted to specific YouTube searches. It works like a video version of AdWords. Type a term in YouTube’s search box and you may find a relevant ad with a link to another YouTube video or channel. For now, only a small number of advertisers are testing the new service, so don’t expect a random search for “Lonelygirl15” to result in a link.
This is not the first time YouTube has experimented with monetization options. Last year, the company introduced a new video-based text ad that appears 15 seconds after a user begins watching a video clip. The ad appears on the bottom fifth of the screen like a TV news program ticker. Users can ignore the ad (it will disappear after 10 seconds) or click it, which will stop the video they’re watching and play a video ad. Once the ad is over, the original video will resume playing.
In tests, YouTube users clicked the overlays 5-10 times more frequently than the banner ads that already appear on some YouTube pages.
Ad spending for online video up to $3b by 2012
Ad spending for online video will grow to over $3 billion by 2012. That’s good news for interactive, classified and entertainment Web sites, but it’s still a drop in the bucket compared to the $70 billion TV market.
EMarketer CEO Geoff Ramsey, speaking about the future of online video at last month’s IAB MIXX expo, explained that the greatest increases for online video ad spending will come from large brand marketers placing TV-like commercials in professional content from large media companies. And that content will be set free from the confines of the TV networks’ destination sites: Programs – includin their ads – will be distributed across the Internet.
Online video advertising will include a variety of techniques. In-stream ads (such as pre-roll) which are currently associated with traditional TV content will increasingly move to online. Product placement, sponsorship and widgets will also be added to the mix.
The full write up plus spending graphs is here.
Surfers don’t mind pop up ads over Web sites…much
You know those annoying ads that pop up over a Web page and that you have to either sit through or click the “Skip Ad” box? Well, they’re not going away any time soon. A new report from Dynamic Logic shows that consumers feel the “appropriate” number of ads that appear over the content of Web pages is two per hour. This number is consistent with the results for the same question asked in previous surveys conducted in 2003 and 2005.
There continue to be people who feel that such intrusive ads are never appropriate, even to support free Web content, but it’s a relatively low amount – roughly one in four people (21 percent) – according to the report. And that’s down from 32 percent in 2003. Taken together, the results signal good news for advertisers already on the Web, and those looking to start.
The flip side: The study also noted that 66 percent of respondents felt advertising on the Web sites they visit has increased over the past six months (in the 2005 survey it was only 57 percent).
The full report including graphics can be found here.
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