People have been speculating about how YouTube would eventually monetize video streams, as opposed to page views. The answer comes in the form of an innovative approach that involves almost transparent animated flash "overlays" that will appear on selected videos. It's an attempt to balance the competing demands of an unencumbered user experience with the effort to monetize the video streams themselves.
Google conducted research, which supports other empirical data in the market, confirming high rates of abandonment of ads (and accompanying videos) when users are exposed to pre-roll. However, pre-roll has been the "default" strategy among sites seeking to monetize their video traffic. To Google's credit, they're taking a careful and thoughtful approach to monetizing YouTube video streams.
Here's how the new overlay approach works, according to Google:
- 15 seconds into the video, an overlay ad appears on the bottom 20 percent of a video
- The overlay animates for up to 10 seconds and is 80 percent transparent
- The overlay then closes automatically
- A user can replay ad by clicking button
If the flash ad is clicked, the video stream stops, a "picture within picture" window is launched and a full video ad plays (no specified duration). After the user finishes viewing the ad, the window closes and the primary video resumes. Google will be reporting click-throughs to advertisers and the duration the accompanying ad plays.Google, YouTube, Video, Online Video, Monetizing, Animated Videos
Source:→ SEL Blog