Google Streamlines Ads On Video

Google has added one more method of advertising, as it continues to seek new sources of ad revenue. The question is whether the new technique -- AdSense for Video -- will fare any better than the previous concepts.

The newly-minted AdSense for Video will provider advertisers a means to overlay video or text ads on a video viewer. The ads will be dynamic, rotating every 20 seconds and will be matched with the content of the video or web page being viewed. (Source: nytimes.com)

The assumption is that the rapidly growing interest in online video and Google's ownership of YouTube justifies the availability of AdSense for Video. To be sure, they've done some things right: AdSense for Video overlays ads rather than using the "preroll" ad technique that requires users to sit through the ad before viewing the content they seek. In addition to being less intrusive, the ads will be more relevant; keyword tags from the video or from the surrounding web text will provide the basis for selecting ads. One other thing about Google's new video advertising program: it won't be available to Internet porn providers.

But, that's a good thing... right?

The problem is that, so far, Google's efforts to expand its advertising offerings haven't done very well. Its 2007 annual report acknowledges, "Revenues realized through the Google Print Ads Program, Google Audio Ads, Google TV Ads, Google Checkout, YouTube, Postini and Search Appliance were not material in any of the periods presented." That doesn't sound very promising.

AdSense for Video will initially be available through YouTube and through U.S. Google partner websites that stream at least one million video clips a month. These include firms such as Revver and Blip.tv. It will, however, also put Google into head-to-head competition with new video ventures like VideoEgg and others. (Source: techcrunch.com)

Microsoft and Yahoo! are not going to be left behind in this. They also provide video ads to partner sites, and Yahoo! recently acquired Maven Networks that offers an Internet TV advertising platform and has clients such as Fox, CBS Sports and Gannett. However, whether the new Google program is wildly successful or not, it is clear that watching videos on the Internet is going to become a lot like watching conventional TV, with plenty of advertising surrounding the meaty content. That's a good thing, too... right?