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Google is now set to hit the video advertising markets with its latest launch of “Video Advertising Program” on Thursday. The company is visualizing for a great time ahead with its arms,”You Tube”, and the existing “Ad-Network”. It hopes to materialize huge capital from the exponentially growing video advertising and online video.

Long awaited “AdSense for Video”, this new initiative from Google, came after the start of ‘testing text links’ with the video advertisements side by side of the search results. It is in beta stage right now and advertisers have been offered an option for “placing their text-ads overlaid at the bottom of a video viewer”, according to Google. This will facilitate a viewer to click on the overlay in order to see the video advertisement.

Google’s idea of showing video ads is quite different from the regular television ads which show up before the start of a program. Google’s ads will not be obstructive in that manner. Google in fact has taken a different approach and this will not prompt viewers to put the ads off, says the company.

The data represents an interesting scenario. According to the estimates of ‘ComScore’, more than 141 millions American internet users viewed almost 10 billion videos in the month of December 2007 alone. Average time spent on watching videos was 3.4 hours per month per person. There was an increase of 34% of the video viewers in December 2007 compared to the January 2007.On an average, an online video takes 2.8 minutes and on this basis an average internet video viewer visited almost 72 videos, according to ‘ComScore’.

The video advertising market is not huge today but the way it is growing, it will be tremendous in future. As on today, almost $20 billion are spent on the internet advertisements in the United States alone. Google, with this perspective, intends to grab a sizable amount of this existing and future ads market with its “AdSense for Video”.
Google could earn revenue of $16.6 from the ad-business last year and this was derived from its text ads that run by side of the search results on its own and the partner’s networks. Google has not been able to attain much success in generating more revenues from its existing business and could not attract advertisers in that way. The company has not been able to snatch sizable ads revenue from the conventional media like newspapers, TVs, and mobile phones.

Google is also opening up the “You Tube” for all advertisers who intend to put video ads on this largest site on the web. Here the ads would be running on the creator’s videos if they agree to be a part of Google’s “AdSense for Video” program. Video creators would be sharing the revenue generated through their videos. Similarly, the website owners may also choose to be a part of the same ‘ad-program’. They can also agree to embed these ad-bearing You Tube videos in their web pages and share a part of the revenue generated.
Google’s “AdSense for Video” program has number of partners including video sites ‘Revver’, and ‘Blip’. Apart from these ‘YuMe’, and ‘Brightcove’, the video technology companies, would also be distributing video contents and advertisements through their own networks.

Google has to face stiff competition from rival companies also. Microsoft, Yahoo, and VideoEgg have also entered in this video advertisement markets and have started delivering video ads to their partner websites. Yahoo’s recent acquisition of ‘Maven Networks’ will be facilitating the technology delivery for video content and ads for more than 30 partner companies including Fox News, Gannett, The Financial Times, and CBS Sports.

Related Links: AdSense for Video Help Pages

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