Google will distribute videos with adverts

Google has partnered with Sony BMG, Condé Nast and Dow Jones & Company to distribute video content to third party sites. At the same time, these videos will show adverts. Here is a short description how it would work, found on the NY Times Website:

On the financial news site StreetInsider.com, for example, videos from The Wall Street Journal, a Dow Jones property, are running within ads on the site. In one, Emily Friedlander, a Wall Street Journal reporter, narrates a video feature on the TKTS booth in Times Square; Sam Schechner of The Journal speaks about marriage in TV shows; and Jonathan Welsh visits a motorcycle show.

After the three videos, a commercial from Pantene Pro-V, a hair conditioner, appears. In that case, Google shares the ad revenue with StreetInsider.com and Dow Jones.

This is a step of Google to move away from pure text and image based advertising to the segment of big money: TV adverts. And quite possibly, a first test of acceptance since they’re probably still working on all sorts of ways of how to monetise YouTube.

Founded as a text-based search company, Google’s early advertisers were smaller companies and advertisers who bought ads to generate direct sales rather than to build brand recognition.

Large brand advertisers still spend the bulk of their money on television advertising, but Google sees potential for them to spend more online through the use of video ads.

(via here and here)

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