Google To Offer "Click-to-Play" Video Ads

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Wednesday, May 31, 2006

Google To Offer 'Click-to-Play' Video AdsGoogle has taken the next step in what they believe is moving-forward and now offers "click-to-play" video ads. Unlike many video ads that automatically play when a visitor goes to a web page, Google's ads will not start until the user clicks on them. Viewers can advance the video, pause it, adjust the volume or click through to the advertiser's site.

Google To Offer 'Click-to-Play' Video Ads

Up until last week, Google sold text, flash, and image-based online advertising to online merchants and those looking to buy a little bit of search traffic to their websites. This week Google has taken the next step in what they believe is moving-forward and now offers "click-to-play" video ads which are set to show throughout its publisher network (but not its own sites).

Unlike many video ads that automatically play when a visitor goes to a web page, Google's ads will not start until the user clicks on them. Viewers can advance the video, pause it, adjust the volume or click through to the advertiser's site.

Via Google's automated auction system, advertisers will bid on a cost-per-click basis, where they pay when a user clicks an embedded link, or on a cost per thousand impressions (CPM) basis. Fees on a CPM basis are expected to range between $5 to the low double-digits, compared with the current online video prices, which can run as high as $100.

Are Video Ads The Next Big Thing?

There's no question that video is becoming more and more popular on the Internet as the success of YouTube and viral videos illustrate. However, I'm not yet sold on the fact that video advertising is necessarily the next generation of online advertising.

I mean do people really want to be bothered by video ads? I don't believe they do. I think people want to find the information they are searching for and find it quick... not watch some 15-30 second "online commercial" that may or may not help them in their search.

Does Google believe that people want to see video ads, or that video advertising is even at all helpful to its users? Well, I'm not a spokesman for Google, but I'd say no, they don't. If they did, than one must ask why aren't they placing these ads on their own site (search, local search, maps, news, etc.), instead of just their publisher network? My guess is that Google had discovered during early testing that people aren't all that interested in clicking on video ads as often as is seen with text ads, and their probably not ready to disrupt their gravy-train to know for sure - which, by the way, pulled in more than $6 Billion last year.

What do you think? Is video advertising the next phase in online marketing?

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