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Now Playing On YouTube: Ads

Posted by iBlog on August 22, 2007

Fifteen seconds into a rock music video on YouTube, a large pink-frosted donut rolls across the bottom of the screen, obscuring the image of the musician’s girlfriend. A beat later, a bright yellow Homer Simpson chases after the cartoon confection. The ad for an animated movie based on the popular Fox (NWS) television show contrasts sharply with the tone of the somber emo video, but it gets the message across: The Simpsons Movie is playing in theaters now.

There’s an even bigger message conveyed by Homer and his donut: For the first time, ads are playing in videos posted on Google’s (GOOG) video site, and watching clips on the world’s most popular video-sharing site may never be the same. The move to include ads with videos was expected. Ever since Google bought YouTube for $1.65 billion last October, it has said new forms of advertising were on the way (see BusinessWeek.com, 10/10/06, “YouTube’s New Deep Pockets”). Analysts say it’s a smart way to generate greater revenue from online video, but viewers may nevertheless balk at having ads clutter an in-progress clip.

Read the full article in BusinessWeek.com

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