YouTube Trys Overlay Advertising

August 23, 2007


YouTube starts placing overlay advertisements into video clips (see Times Online article).
That´s semi-transparent animated “overlay” ads showing up at the bottom fifth of the video window for a few seconds when a user views a YouTube clip. The initial cost for advertisers will be $20 per 1,000 views and the revenue will be split between YouTube and the content provider.
Wow, what a price! If you see some viewing statistics on You Tube …
But: How will the user react? Preroll advertising and interruption advertising didn´t work in the net.
We will see.
Eileen Naughton, YouTube’s director for media platforms is cited in the Times article: “We are trying to be respectful of the YouTube community, whilst working with marketing partners.” (…) “less than 10 per cent of users choose to close the image overlay as soon as it appears”.
Well, they shouldn`t undervalue the competition on the video services market. When the users get annoyed they will switch.


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