Google announced late Monday that it is integrating the AdSense network with YouTube, offering a bold new alternative to current models of supporting online video through advertising. Will this latest move by Google totally disrupt the existing online video advertising paradigm? Will video units become the answer to the YouTube revenue conundrum?
This is huge news for the world of online video and advertising. Google believes these video units will allow more publishers to have video content on their sites while simultaneously offering them the potential for extra revenue. It is also the logical next step, following Google’s release of text-based ad overlays on select YouTube videos. Video unit ads dedicate a small companion banner at the top of the screen to run graphical banner ads. This takes up around 20 percent of the player screen. A text ad also appears on the bottom portion of the video once a user clicks the play button and the video begins showing.
The Google AdSense blog explains:
“You can choose categories of video to target to your site, select content from individual YouTube partners, or have video automatically targeted to your site content.”
Around 100 YouTube video content partners are currently taking part. Google would not release a full list of participants, even so, notably missing from those mentioned were any major media companies. They did mention some of the current content partners including Expert Village, a producer of how-to videos; Ford Models, a modeling agency; and Extreme Elements, which creates videos about extreme sports.
From a video producer angle this looks pretty good—at least initially; imagine your videos syndicated to thousands of websites while you get a cut from each ad. So why are the big media companies holding back? It looks like concerns have already surfaced over who controls the content placement and how well it can be targeted.
Website publishers may abstain from jumping on the video unit bandwagon because of similar concerns. With the video distribution completely out of their hands, both content producers and web publishers will have to rely on Google’s targeting to ensure the relevance and appropriateness of the streamed videos.
For consumers, there is certainly an appeal to the non-invasive, non-interruptive nature of Google’s video unit ads. But will they want to watch these videos outside of the familiar YouTube environment? Google’s text ads have succeeded in spite of irrelevant links showing up where the targeting is clearly not at 100%. Will consumers find it more irksome when the inevitable irrelevant video clips pop up? Online video has proven itself a powerful medium thus far, so odds are where the videos go—so long as they are adequately targeted—eyes will follow.
This is exactly where the fears of publishers and content providers come in. The power of web video, its popularity and viral nature, also make it uniquely challenging to control, target and navigate online. This has meant that in spite of the explosion of online video, publishers have remained somewhat wary of the medium. Google has undoubtedly shaken the world of online video, but the hesitance of publishers will continue to hold web video back as long as concerns over inadequate control linger.
