Sure, it seemed like a good idea. Instead of preroll ads, Google today is rolling out "ad overlays" on YouTube that run about 15 seconds and take up only 20% or so of the screen. If the idea sounds familiar, it is: TBS and other cable networks have been using a similar device for years to promote their shows. But not everyone is happy with Google's move. Bloggers today are criticizing the move on two fronts:
1. It's not subject-relevant like AdWords. Scott Karp at Publishing 2.0 points out that in many if not most instances, the ads will have nothing to do with the editorial content," then adds ominously, "Now, it’s opt IN. And now we’re going to find out what people REALLY think of video ads, which Madison Avenue has always known in its heart but has never been able to admit." Cue Beethoven's Fifth.
2. It will not make Google enough money. This is the opinion of disgraced analyst turned blogger Henry Blodget who has crunched the numbers and found, "In short, YouTube's revenue won't likely be material to Google for at least a year or two and possibly more."
My own take is that this is probably the only way Google could make any ad money from YouTube and, knowing Google, they will find a way to make the ads more relevant. As for revenues, Google already made its money back on YouTube the day it bought it.
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