Tameka Kee from Online Media Daily reported today that Google has unveiled a new ad platform, allowing advertisers to show content within videos on YouTube:

The YouTube InVideo Ads are semi-transparent overlays that appear in the bottom 20% of the video player. The rich media animations show up 15 seconds after the chosen content begins, with the overlay lasting up to 10 seconds. The overlays also have interactive functionality, allowing users to click through to an advertiser’s linked URL–or to launch a new player within the original window that will run a video ad and bring the user back to the content at any time).

Advertisers have the option to target users by age, sex, geography, daypart, and video genre. YouTube is selling the InVideo Ads on an impression basis, with $20/cpm as the baseline, but YouTube also provides click-through data to ad partners. The overlay, once it appears, counts as an impression.

To the best of my knowledge, this is the first time dynamic in-video advertising is available, anywhere, so this is a pretty important step for GoogleTube.

The article doesn’t say anything about whether content providers will have any control over what gets shown with their videos, and neither does the announcement on YouTube itself:

Today we’re offering select partners the ability to incorporate YouTube InVideo ads into their content. These are animated overlays that appear on the bottom 20 percent of a video. If you’re interested by what you see there, clicking on the overlay launches a deeper interactive video ad that we think is relevant and entertaining. (The video you were watching is temporarily paused.) If you choose not to click on the overlay, it will simply disappear, so that you’re in full control of your YouTube experience.

The comments show that users have a mixed reaction to the announcement, although somewhat more skewed to the negative, as evidenced by this sample from Mainyard48:

Worst idea ever. When I start to see that crap, it’ll be time to unsubscribe. I have no problem with sitting through a pre-roll . At least that won’t obscure the actual content I wish to see.

Those who do support the initiative are primarily taking a resigned, oh-well-it’s-a-business stance:

It’s not “moneygrubbing”… Google still has 13,000 employees to pay, shareholders to respond to, and customers who want them to build cool stuff. I’m sorry to say but all of that does actually take money and time (which is also money) Besides, this is actually way better than a TV ad - just think if you could have a tv ad go away after a few seconds of not responding to it? Instead, they always run the full 30 - unless you have DVR or TIVO - but you PAY for that feature. It’ll be interesting to see how this works out, and if it can keep google stock moving.

Personally, I understand the rationale, but I’m sure YouTube and Google will be treading very cautiously to avoid irritating the public—who are, after all, the reason the ad space has value in the first place.

I recently wrote a piece for Online Publishing Insider, in which I expressed my belief that advertisers need to look at ways in which the ads themselves can be perceived as valuable:

If we take it as a given that users have infinite choice and zero obligation to absorb our advertising messages, then we have to change the way we think about the messages we provide. As Steve says, we have to focus on being of use to the consumers.

If advertisers deliver value through the ads, then consumers have a motivation to pay attention. The trick is to make sure the giveaway is intricately linked to the product or service.

What does this involve? It means thinking of ads as a service to the consumer rather than a message from the advertiser.

I firmly believe that the companies that will be truly successful over the long term are those who focus on providing value through everything they do—whether that value is entertainment or something else.

What do you think of YouTube’s move and advertising in general?

This entry was posted on Thursday, August 23rd, 2007 at 4:54 am and is filed under Relevance, Google. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.