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Youtube/Google’s New Advertising Technique August 20, 2007

Posted by Tony S in Google News, News.
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Finally, the day we’ve all been waiting for: Google reformatted Youtube so that its advertisements aren’t annoying! Many companies have tried; few have succeeded. Will Google’s Youtube be the first in a revolutionary chain to solve the problem of annoying ads? We’ll take a closer look in this article.How will Google place the ads on Youtube?Google has decided to put these “mini ads” on the bottom of each Youtube video. Each ad will be semi transparent, and mostly out of the way, but users can still click on the link if they are interested. When a link is clicked, the Youtube video will automatically pause, and when the user returns back to the Youtube page from the advertisement, the video will start again, this time without the ads. Each ad will last 10 seconds, which is more than enough time for a person to read it, but not too long so to annoy the viewer.How will companies benefit by placing their ads on Youtube?This question is asked purely to emphasize one point: companies will only benefit, if not a great deal from, placing their ads on Youtube. To give the reader some idea of how vast the Youtube community is, here are some statistics: there are over 130 million subscribers on Youtube, and the number is growing daily. Since Youtube is a free, online community, its videos can be seen by both users and non users, as well as posted on other Web pages by its users. Supposing that ONLY Youtube users viewed Youtube videos, companies would still make a fortune. Now, imagine if each user showed their video to one friend. The amount would double. Assume that each user had at least 3 videos. The amount of ads that person viewed would be astronomically high.Google spent $1.65 billion to buy Youtube. It will receive profits of billions from this business excusion. Other video sites will soon follow. This is the begin of a Video Ad Revolution. By the way, this Youtube format will begin to take effect on Wednesday, August 22nd, 2007. Let’s hope it succeeds.Via [CNET]

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