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Has Google cracked it?

Posted in Advertising, Digital, Branwell Johnson, Latest reporters' blogs August 22nd, 2007 by Branwell Johnson

Google may now have solved the problem of monetising YouTube to its best advantage with the new technology that allows “overlays” across the bottom fifth of each video window.

The Holy Grail for advertising on video clip sites, the visual snack food of the modern age, has been to do so without unduly aggravating or irritating the user. Remember how indiscriminate pop-ups used to cause teeth-grinding and desk-thumping? It’s the same in the video clip world if you have to watch a pre-roll ad before reaching the content.

There have been several studies saying that young consumers understand that the trade-off for free content is advertising – but in practice they seem to drift off to less commercialised sites or skip the video clip altogether. Google’s new model introduces the semi-transparent overlay a few seconds after the clip has begun – so the viewer is already hooked in – and control remains with the viewer as it’s up to them whether to click on for the full ad.
If the trial figures given by Google are true – that only 10 per cent of viewers closed the overlay – then champagne corks must be popping.

Other sites offering clips and downloads are developing similar non-interruptive ad models. Maybe the new dawn for advertisers is finally here…. and the ball is now back in the court of ad agencies to develop compelling ads that work in this format.

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