by Google Inc. (GOOG), plans on Wednesday to start offering
advertising within certain partners' videos using an "overlay" method
it expects will be a boon to advertisers and content creators without
irritating wary consumers.
The overlay ads are the first of several "innovative" ad types YouTube
intends to introduce, the company said. Online video is an exploding
area of Internet use, but one where successful ad models are only
beginning to emerge. The moves by YouTube - the Internet's
most-visited video destination with 189 million users worldwide in
July, according to comScore, and distributor of some three billion
minutes of video each month - will be closely watched. If successful,
the ads could boost Google's already fast-growing revenue while
reducing tensions with media companies over compensation for
copyrighted content appearing on YouTube.
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.
YouTube said the ads are engaging to consumers without being intrusive
and avoid annoying them by letting them control how involved they want
to become. The format also encourages advertisers to create
high-quality ads that win over consumers.
The approach could prove much more effective than other ad types, such
as pre- rolls, which are video ads shown prior to video clips. Eileen
Naughton, director of media platforms at Google, said early tests show
that less than 10% of viewers close the overlay, five to 10 times more
people click on the overlay than on a standard display ad, and three
quarters of viewers watch the click-to- play ad to the end. That
contrasts with pre-roll ads, which are shut off by as many as 70% of
viewers, she said.
"Ads have real value as information when a user is interested and
searching for something or engaging with something they're interested
in," Naughton said.
YouTube promises advertisers several ways to target their ads to
consumers who are more likely to be interested in what they're
selling, including by choosing YouTube channels on which to advertise,
video genre or content, user demographics and geographic locations,
and time of day.
YouTube has been testing the ads for several weeks with a handful of
content partners, who receive a share of the revenue that's similar to
what Google gives partners in its keyword-based text advertising
network, estimated at a sizable 70% to 80%.
Advertisers will pay a flat rate of $20 per thousand consumer
viewings. In addition to the overlay and click-to-play ad, they get an
ad unit beside the video player. The price is similar to that of other
in-video ad units, such as pre-rolls, said Rinku Mahbubani,
interactive media supervisor at GSD&M, a unit of Omnicom Group Inc.
(OMC) that designed the BMW ads.
While Mahbubani hasn't seen reports on the success of the ads yet, "we
definitely think it's the way the future of video advertising is going
to go," she said. "You're going to get people who are truly interested
in your brand clicking through." And because there is no limit on the
length of the click-to- play ad, marketers can "go beyond the creative
limits of the 30-second spot," she said.
"We expect that there are going to be all kinds of engaging (ad)
models here," said YouTube Group Product Manager Shashi Seth. "This
opens up a whole pallet of possibilities" for advertisers
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.