YouTube overlay ads going mainstream

Now even small advertisers can employ Invideo overlay ads that appear at bottom of video

Technology trends and news by Ronny Kerr
March 16, 2010 | Comments (4)
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Google, in an ongoing effort to transform the number one video site on the Web into a profit powerhouse, introduced Tuesday afternoon a new way for small advertisers to take advantage of the effectiveness of the Invideo overlay ad.

Display Ad Builder, a Google ad construction platform used by over 20,000 advertisers, allows companies with little to no experience to quickly and easily edit templates and fonts to create display ads. That's why over 80% of those 20,000 have never run a display ad campaign before.

Now, Display Ad Builder includes all the tools necessary to construct overlay ads, those little banners that appear on the bottom of a video, have for awhile been one of the most effective ad formats on many video sites, including YouTube.

Overlay template

"With this new format, Display Ad Builder will enable more advertisers to run display advertising campaigns on YouTube," writes Product Manager Christian Oestlien. "For example, if you’re a small business that sells beauty products, you can quickly use a template in Display Ad Builder in AdWords to create an overlay ad and then run it on popular fashion and beauty videos."

Advertisers can choose to run the ads they build on a CPC (Cost Per Click) or CPM (Cost Per Thousand Impressions) basis and have a lot of control over which videos show their ads; advertisers can choose the videos categorically, demographically, or even individually.

Since last October, YouTube has showed ads in one billion videos a week, or one in seven videos. The site is well on its way to incorporating advertising in all the site's videos, a move that would entice even more advertisers of all sizes.

It would be interesting to see if spikes in advertising negatively affect viewership on the site.

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Bill Keck
Bill Keck, on March 16, 2010

Oh yeah, all over it!

NAPW National Association of Professional Women

I have to say I'm not a huge fan of this. Although I see the benefits from an advertising perspective, I think it's going to hurt YouTube. People on the web like free! If YouTube doesn't provide videos free of advertising, some other site will.

Ronny Kerr, on March 17, 2010

I had that same thought.

On the other hand, YouTube, that is, Google, has some serious strength that an up and coming site may not be able to compete with. For example, we recently found out that YouTube sees 24 hours of video uploaded to its site every minute:

Janet Adams, on April 2, 2010

I think youtube is a great tool for anyone interested in watching or uploading videos. I have been using the site for years now, and still think it is doing a good job. Ok, so sometimes it gets criticized for being too easy to break copyright laws, but youtube's online security is getting better. The best thing about the site is its great video search engine and database. No wonder it made it as the top sharing site on this month. But there's some tough competition out there and as online video gets bigger and bigger, there's sure to be a backlash. Keep online videos free and easy to share!

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