YouTube Launches Ads in Videos
YouTube started placing ads in videos this week, but is shunning the typical pre-roll concept and instead casting its lot with semitransparent “overlay” ads at the bottom of selected video clips. These flash-animated placements appear on the bottom of the screen while videos play. The ad disappears after about 10 seconds if the viewer does nothing; the featured clip automatically pauses if the viewer clicks on the overlay to launch the full pitch.Users can click on the ads to pause the clips and watch commercials without leaving YouTube.
Shashi Seth, a YouTube group product manager said that a 15-second spot placed before YouTube videos resulted in a 75 percent drop-off, while the overlay style generated just a 10 percent drop-off. In a test, Google said the ads got click rates of 1-2 percent, with 75 percent of clickers watching the message all the way through. In shunning pre-rolls for targeted ad invitations, Google is borrowing a page from several startups, including VideoEgg and ScanScout, which have tried overlay video ad features.
Warner Music Group is one of the first group of 1,000 “content partners” whose videos will get advertisements. Pictured below is an advertisement placed on a video for “What I’ve Done” by Linkin Park. Check out how the new YouTube ads work.
The initial cost for advertisers will be $20 per 1,000 views (whether or not the user clicks on the ad). Revenue will be split between the website and the content provider. The pictured Linkin Park video has been viewed over 19 million times. At $20 per 1,000 views, WMG’s share would be just over $190,000. Not bad. And basically found money.
This post was written by: Kim Mickelsen