YouTube Unveils Two New Ad Options

  |  November 14, 2008   |  Comments

Advertisers can bid on search terms to display "sponsored" video on Google's video-sharing site.

YouTube has never suffered from a lack of videos, only a lack of advertising -- at least according to stockholders who are anxiously awaiting a profit. But the video-sharing site will soon be getting a lot more of both as parent company Google unveils its latest plan to monetize its $1.65 billion acquisition.

People who search the site will now be greeted with video advertisements similar to those produced by Google AdSense. YouTube searches now produce "sponsored" videos on the right side of the screen alongside unpaid results on the left. For instance, a search for raunchy comic Lisa Lampanelli turns up two video ads: one for the James Bond movie "Quantum of Solace," and another for the "Miss Horrorfest Contest."

Like AdSense, YouTube Sponsored Videos allows advertisers to bid on search terms. The service charges on a pay-per-click basis, with advertisers allowed to set a maximum price they are willing to pay.

The service was introduced Thursday by a post on the official YouTube blog. "Sponsored Videos is a self-serve advertising platform that will allow you to promote your video to the audience you are interested in reaching in an easy, effective, democratic, and affordable way," the post read, adding that the service was developed in response to requests from "aspiring musicians, talented performers, small business-owners and many others."

Indeed, advertisers have long clamored for a way to reach YouTube's massive audience -- it now ranks as one of the Web's top-five search engines, even though search is only a tangential function of the site. But YouTube's many advertising initiatives of late are at least as much an effort to wring some money out of Google's pricey acquisition.

It was only last year that YouTube introduced in-video advertising, a move was hailed as a significant step toward monetization. But even that has failed to address a primary concern about YouTube: The site consists mostly of amateur videos, the lion's share of which major advertisers do not want to grace with their branding. Newer video-sharing site like Hulu do not suffer from that problem because they only contain professionally produced content.

Just last week, YouTube announced a deal with MGM that would bring many of that studio's full-length features to the site, sponsored by advertising, thereby increasing the amount of professional content on the site and welcoming more ad dollars. YouTube has struck similar deals with CBS and Lionsgate and said it is hoping to do more.

In a separate announcement today, YouTube said it will now begin running overlay ads in YouTube partner videos that live on other sites. This means that no matter where a YouTube video is embedded, it can contain an ad and earn revenue for YouTube partners.

"By helping YouTube partners generate additional revenue no matter where their videos are played, we hope to encourage further content creation among our most popular and prolific video creators," wrote Arlene Lee of AdSense Publisher Support on the official Google AdSense blog.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!


Douglas Quenqua is a journalist based in Brooklyn, NY who writes about culture and technology. His work has appeared in The New York Times, Wired, The New York Observer, and Fortune.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.



Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.



    • Customer Service Representative
      Customer Service Representative (Common Sense Publishing) - Delray BeachDo you thrive on chaos? Love to multi-task? Enjoy a fast paced work environment...
    • Business Intelligence and Reporting Analyst
      Business Intelligence and Reporting Analyst (Stansberry and Associates) - BaltimoreStansberry and Associates is seeking a driven individual to fill...
    • Internet Marketing Campaign Manager
      Internet Marketing Campaign Manager (Straight North, LLC) - Fort MillWe are looking for a talented Internet Marketing Campaign Manager to join the...