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YouTube tests video ads

updated 02:00 pm EDT, Wed August 22, 2007

YouTube Ad Test

Google's sub-brand YouTube today revealed that it has begun testing ads accompanying its videos, marking the first time since YouTube's founding that the company has relied on video advertising rather than static images or content deals to pay for its costs. Rather than embed the ads themselves into users' clips, the new technique overlays a small Flash ad at the bottom of the segment. Users can either click and momentarily interrupt the intended video to view the ad or let the overlay disappear completely within 10 seconds.

The system allows advertisers to offer far longer clips such as movie trailers while being as unintrusive as possible, YouTube says, and also allow advertisers to change which clips receive given ads, including by region and time of day. Deals for the first run of ads have been struck with BMW as well as Fox, New Line Cinema, Warner Music, and several other smaller partners. Unlike the majority of Google's current business, however, the system will pay strictly for viewing ads and will cost each advertiser about $20 for every thousand viewers.

The move may have significant ramifications for Apple, whose Apple TV media hub and iPhone both feature a YouTube interface but lack the Flash animation component necessary for displaying ads. Neither YouTube nor its parent Google have addressed the question of whether views on Apple devices will affect advertising costs or if a potential update to either product with Flash support would enable ads.

by MacNN Staff




  1. notehead

    Joined: Dec 1969



    I think not. This is VERY annoying and I expect the backlash against YouTube to be both huge and justified. It's naive to expect something for nothing, but I abhor the way companies try to put their goddam advertisements into my eyeballs every second of the day. It ultimately makes me decide which companies to AVOID.

  1. Herod

    Joined: Dec 1969


    off topic....

    how much lower is john travolta going to stoop next?

    he sure isnt that cool cat from s.n.f. and pulp fiction anymore thats for sure.

  1. BDLatimer

    Joined: Dec 1969


    VERY intrusive

    Seeing these similar ads at the bottom of current shows on TV is INCREDIBLY annoying. To see the same provision possibly making it to YouTube is quite frustrating.

    As "notehead" indicated, I certainly expect the backlash to be huge. Customers/viewers have ways of indicating their displeasure, and for television, mine has been to actively notify the networks that this is an unacceptable approach to take. For YouTube, it will probably (hopefully) be as vocal an approach, along with simply not viewing the site as often as I have in the past.

  1. just a poster

    Joined: Dec 1969


    I agree... very intrusive

    The backlash against intrusive advertising will be tides of people using ad blocking technology.

    Unlike the problems of blocking adult or pornographic material, blocking ads is much easier because there's a standard set of ad sizes and APIs. These are what make the ads pluggable into standard templates/designs and centralize the tracking of eyeballs who view the ads before payment to the end, or displaying, site owner is made.

  1. testudo

    Joined: Dec 1969



    The backlash against intrusive advertising will be tides of people using ad blocking technology.

    You mean there's people NOT using ad blocking software now?

    Certainly none on MacNN, otherwise they'd have gone insane by now.

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