The video-sharing site that was acquired by Google in November is experimenting with the precise length, form, and placement of those ads, and will begin rolling them out this summer, Suzie Reider, head of advertising for YouTube, told an audience at the Ad:Tech conference in San Francisco Wednesday.
“We’re looking at executions like a very quick little intro preceding a video, then the video, then a commercial execution on the backside of the content,” Ms. Reider said.
The idea is to generate long-promised revenues that Google can share with the more than 1,000 “premium” content creators whose video material is available on YouTube, Ms. Reider said.
The ads will also provide marketers and advertisers new opportunities to reach consumers, she said. And they would also help justify YouTube’s $1.6-billion price tag. More than 35 million people logged on to YouTube almost 115 million times in February, giving the site a 45 percent share of the Internet video market, according to web analytics firm Compete.com.
A long television-style commercial or “pre-roll” that appears before a user can watch a selected video “doesn't work,” but users can react favorably to an ad placed between a first and second video, said Jason Hirschhorn, president of Sling Media Entertainment Group, the maker of Slingbox.
But the model for advertising with user-generated content is still in flux, said Mr. Hirschhorn during an Ad:Tech panel. “Anyone who says they’ve figured it out is wrong. The reality is advertisers need to be very flexible.”
Ad formats could vary for different types of videos and content providers, Ms. Reider said, adding that there would be a gradual rollout of ads with many adjustments.
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