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For Marketers, Ads like YouTube's Could Tilt the Playing Field

Posted by: Burth Helm on August 22, 2007

Sounds like advertisers like what they see with YouTube’s new advertising model. Announced last night, YouTube is following smaller players like VideoEgg by inserting overlays over the bottom section of some of its videos, which users can then click to watch an ad. Here’s an example:

I spoke with a couple of media buyers this morning to get their take. James Kiernan at MediaVest says it looks like the price Google’s asking — about $20 per thousand views, according to the New York Times story — is competitive with similar ads at other video sites. I hear there’s an additional fee when a user clicks to watch the ad, but still getting specifics on how much that is. He and other buyers I spoke to said that the advertisers they bought for are in favor of this style of video ad.

But the challenge now, Kiernan points out, is a creative one. You’ve got to give users a reason to click and watch. I’m very curious how this changes online video ads. We’re starting to see an increasingly un-level playing field online: It’s easier and easier to advertise Halo 3 or The Simpsons effectively and on the cheap. Not so much if you’re selling toilet paper or other consumer-product goods. Are there further implications to this?

UPDATE: Looks like YouTube isn’t serving the ads when you embed videos on other sites, like I did here. To see the overlay ad on this vid, click here.



News, opinions, inflammatory meanderings and occasional ravings about the world of advertising, marketing and media. By marketing editor Burt Helm, Innovation Editor Helen Walters, and senior correspondent Michael Arndt.

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