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Tuesday, May 23, 2006

Google Selling Video Ads On The Web

The click-to-play video advertisements go on sale beginning today, and will be available to advertisers in the US, Canada, and Japan at launch. Visitors to sites in Google's network of AdWords publishers will have complete control over the video ad experience...

...Google's AdWords team announced in its blog. Only a static image will be loaded upon reaching a page containing a video ad.

Once started, users can advance the video, pause it, and adjust the volume of the playback. As with other Google ad formats, users can click through it to the advertiser's website.

Google sees the product as one that can be used by smaller advertisers as well as powerful brand names. "This feature makes video ads much more accessible to all advertisers," the post said.

More details emerged from the Video Ads team in the post:

First, as with all AdWords ad formats, video ads will compete for placement on sites in the Google content network with other text, Flash and image ads -- and, as with our other image ad placements, you can choose to bid on a CPC or CPM basis.

Second, these ads will be supported by both site- and keyword-targeted campaigns. You can choose to serve your video ad on a specific site or on pages in our content network that relate to your product or service. As always, you have the ability to geo-target your video ads internationally, nationally, or locally.

Even though any size advertiser can participate in the program, it is likely Google hopes to attract the brand names to video ads. The expansion of broadband Internet access in the US has taken place primarily to households with higher income and more education, which would be an attractive audience to advertisers.

The targeting features Google provides for ads will permit them to be targeted to specific sites or related pages within the publisher network. Younger age groups have been turning more to the Internet than television. The potential of putting ads in front of that demographic may be an aphrodisiac to marketers.

Video ads will cost more than the unobtrusive text ads that helped Google build its multi-billion dollar business. The company derives about 99 percent of its revenue from online advertising, and reported numbers in its recent earnings announcement that easily bested analyst estimates.



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