Archive for August 23rd, 2007

YouTube Gets Ads: Part 2

Yesterday we reported the news that Google plans to begin running ads on YouTube. And we also asked the question: Are the tens of millions of YouTube visitors going to mind?

Today, the answers begin rolling in. From the Hollywood Reporter:

Despite Google’s attempt to present advertising in the most unobtrusive way, many users reacted with concern on YouTube’s official blog post.

“I’m unsubscribing from anyone who has ads in their videos, and if everyone has ads, then I’ll just find a site that doesn’t,” one post read.

Others, however, praised the strategy and wrote that as long as the content owners and the viewers had a choice about the ads it wouldn’t mean the end of the site. Some also realized that YouTube, bought last year by Google for $1.65 billion, is a company that needs to make money, and this might be the best option available.

“YouTube and Google need to get some ROI or else all of this goes away,” a Wednesday morning commenter wrote. “Let me say thanks to you, Goog, for the work, dedication and the imagination that viral video can make the world a better place.”

Google is confident that overlay is its best option on YouTube. The company found that 50%-70% of viewers tested would turn off a video if there was a preroll, and the amount of users clicking on overlay ads was five to 10 times greater than the rate for banners.

The spokesman, however, did not have the number for the percentage of testers that clicked on the overlay ads. He also said that he did not have a sense of what percentage of users were turned off by overlay and closed the video once that type of ad started.

On that note, we’ll step away from this topic for a while and see how the situation plays out.

(Read the whole Hollywood Reporter article here.)