Finally, an advertising stategy for YouTube
After investing $1.65 billion in YouTube, Google was bound to bring in contextual video advertising - the only question was how. Now it seems, Google may have found the solution in overlay video advertising (similar to the one being used by sites such as VideoEgg).
Instead of loading a commercial at the start or end of a clip, YouTube will introduce an animated overlay across the bottom fifth of the video player screen, which would appear about 10-15 seconds after the beginning of the clip and would invite the viewer to click and watch a commercial or trailer on a new screen that opens within the original viewing box. If the viewer has not clicked on the ad, it will disappear within 10 seconds. The revenue from the ads will be split between the media partner and YouTube.
With more than 190 million visitors in the last 30 days (via TrafficEstimate), YouTube is competing with Web sites built by the entertainment industry’s biggest names and could draw more marketing dollars away from television networks and other channels. The U.S. market for Web video ads is expected to more than quadruple to $4.3 billion by 2011, as users make Web video a regular habit, according to research firm eMarketer.
A sample ad spot can be viewed here. I could not view the banner, probably because of region targeting - the image above is via the New York Times.
Out of all the advertising models tested, this seemed to be the least intrusive. Probably because most of us are used to it on television as well. Now to see how well it works on the Web in terms of response.
Update (August 23, 2007): VideoEgg runs an update on their website inviting Google to the video overlay ad.
Related reads:
YouTube debuts online video advertising strategy
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