Wednesday, August 22, 2007
YouTube Move Could Kill Off Pre-rollsAfter a year, Google has finally figured out a plan for monetizing YouTube's traffic. Video overlays that hang out on the fringes of the video screen, will be the preferred ad revenue stream.
Google is touting these ads as less invasive and more likely to receive a click through. The company smartly is allowing advertisers to target viewers by demographic information, time of day, and which videos they will run against, so big name brands won't fear their products appearing alongside childish or obscene content.
The $20 CPM Google will charge is low by video advertising standards but high for user generated content. The first ads will run against professionally authored content, so rates my fall for UGC.
As YouTube goes so will the video advertising industry, so if pre-rolls aren't part of the mix and national advertisers are happy to develop overlays, that's where the majority of the creative will be.
Pre-roll ads have always been suspect, so this could be the death knell. Let's see how long it takes for other video sites to follow and shun pre-rolls.
By John Gartner at 01:18 PM | Comments (1)