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YouTube to Use Pre-Roll Ads?




vnunet.com reports that Google is planning on using 30 second pre-roll ads on YouTube beginning next year according to Patrick Walker, European head of video partnerships at Google. YouTube and “the broadcaster” will share revenue from the ads.

vnunet.com also stated:

Walker told delegates at the MipTV conference in Cannes that broadcasters have been enthusiastic about creating the ads, and predicted that 2008 will see “real money coming in” from video advertising.

Google “youtube preroll” and you’ll see what we all already know—YouTube users don’t want pre-roll ads. ClickZ reported almost six months ago that most marketers say pre-roll isn’t the best way to monetize online video. At the time, Google was only in the process of buying YouTube and according to Daniel Blackman, strategic partner for development at Google Video, they were shying away from pre-roll ads.

What has taken Google so long to get to this point? Perhaps vnunet.com’s conclusion casts a little light on the matter:

Google’s revenue from YouTube is likely to get yet another boost following the company’s $3.1bn acquisition last week of digital marketing company DoubleClick.

Google will use DoubleClick’s technology to encourage YouTube users to click from one video to another.

Somehow, that strikes me as an awful lot to pay to encourage clicks…

Obviously, pre-roll is the easiest way to monetize online video, but I don’t know if it will work for YouTube. It depends on how they do it, of course. I’d hate to spend as much time watching a pre-roll ad as I do yet another stupid YouTube video. However, for professional or “real” content, 30 seconds is a small price to pay.

  • http://www.marketingpilgrim.com Andy Beal

    If these previous reports are anything to go by, it doesn’t sound like 30 seconds of pre-roll will be warmly welcomed.

    http://www.marketingpilgrim.com/2006/11/video-ads-annoying-yet-more-technology-arrives.html

  • http://adwordseditor.blogspot.com Dan

    video sites are looking to somehow make some money. take a look at lulu.tv. their model is pretty interesting. They pay people each month for the # of plays their videos get. They did have a fee to be a part of it, but then they switched it to free for all.

  • http://www.xuru.com Jeremy Luebke

    30 seconds is way to long for YouTube videos. Maybe 10-15 seconds might work, but not 30.

  • http://www.photoshoptown.com Bret Adams

    I concur with the last paragraph of this post. Perhaps they should consider which videos to preroll. there are tons of videos on youtube less than 30 seconds, and watching an equal or greater amount of ads would be preposterous. But on longer content, I don’t feel it would be much of a strain. Any word on how these ads would be placed? In other words, would they be inserted server-side and on the fly (potentially allowing a work-around to skip the ads) or would there be some sort of protection assuring that the ads are “built-in” upon upload.

  • http://adwordseditor.blogspot.com Dan

    Will ads stop people from posting videos there? I doubt it. It is free. Has all the tools you need. I think people would use embedded YouTube videos on their own sites less due to basically giving free ad space. On the YouTube site might be a different story.

  • http://www.photoshoptown.com Bret Adams

    @Dan

    Yea I agree, but I forecast a reduction in people watching the vids as well. Who is going to want to sit through 30 sec of ads to watch a girl booty dancing or a guy falling off the roof. Its not like theyre watching a replay of last nights episode of Lost…

  • http://www.prezzatech.com Brian

    Content is king.

    If there’s an awesome video that my friends tell me about… I’ll sit through 30 seconds. If a blogger I respect links to a video and says… this one is worth watching, I will probably wait.

    Like TV shows, this will truly start to filter the best content from the crap. People won’t want to watch the lame, random stuff anymore. Unless this will only apply to very popular and sponsored content (after all, all these partnerships with TV networks have to be going somewhere).

  • http://www.potentmark.com Mark Raratonga

    Youtube’s target market won’t vouch for it. Who’s going to wait half a minute to watch a music film clip?

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  • http://sandboxtv.com Rob

    the online video world is crazy these days. i found this incredible site the other day, sandboxtv.com. its by far the hotest delivery system and interface i have seen on the web. they are really pushing the limits of flash with their custom player. i heard these guys are about to launch- we need more of these guys and less of youtube. check it out if you wanna see the next level-

  • http://www.leadsbyvideo.com LeadsByVideo.com

    [..]YouTube will only serve you ads at timed intervals. Ads will be highly targeted[..]