In an experment on selected (not all) premium video content, Google Video is offering users the ability to watch that content, which would otherwise cost from $1.99 to $14.99 without having to pay. An advertiser banner appears at the top of the screen for the duration of the stream/show. (See example.)
If they are inclined, users can then click on the banner and watch what amounts to a TV commercial, while the content they were watching on Google Video is paused until they return. Involved content producers get a cut of the negotiated price (don't recall if it's PPC only or a hybrid PPC/CPM formula; my guess is the latter).
This test currently involves approximately five advertisers (who were specifically matched with content providers) and does not include any of the user-generated content on the site — addressing a persistent objection and concern of mainstream marketers.
Quick thoughts:
- This is partly a response to the fact that users aren't watching the paid streams in anywhere near the volume as the free streams on Google Video
- Google says this is also a response to advertiser demand
- Generally it's a good move for Google to broaden Google Video's overall appeal at a time of intensifying competition
- This starts to turn Google into something like an on-demand TV network with traditional, TV-style ads. How will Google navigate these waters with traditional TV content producers? This may be challenging if the program is permanently adopted and broadens
- If the program does go on, it offers potentially very targeted TV advertising opportunities, as with "click to play," for marketers
- Will users click on/watch the ads? My guess is that they will when they have a choice
CBS, NBC, ABC, FOX meet Yahoo, Google, AOL, YouTube. And with the ability to deliver Internet content to TVs gaining momentum, might Comcast start to be concerned? That's still a long way off but the TV/video landscape is getting more complex and interesting almost by the week.
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Hitwise May, 2006 Video Traffic:
- YouTube — 42.94%
- MySpace Videos — 24.22%
- Yahoo! Video Search — 9.58%
- MSN Video Search — 9.21%
- Google Video Search — 6.48%
- AOL Video — 4.28%
- iFilm (owned by MTV/Viacom) — 2.28%
Screenwerk 
June 23, 2006 at 4:55 am
I can’t wait to dump Comcast. Everything should be free on demand, not just the 2-3 episodes per month they decide we can see, or the 20 year old movies. If not free, at least charge a flat rate to access the database of available videos. All of them, not just a few “channels”. I have no problem with ads on top or bottom, as long as the service is good (reliable, not choppy, decent selection). And I have no problem surrendering a list of things I might want to buy, instead of more car commercials. Those that don’t want targeted marketing should be able to pay a premium for ad-free streams. This seems so glaringly obvious, yet it’s taken this long for somebody to offer even a trial of such a service.
June 23, 2006 at 1:59 pm
[…] Greg Sterling, founder of Sterling Market Intelligence, thinks this may be in part a response to a lack of users purchasing of the paid content. Still, the reports that I have seen place Google well behind the video leaders YouTube and MySpace. […]
June 29, 2006 at 1:31 pm
August 7, 2006 at 12:09 pm
[…] This development marries Google Video’s recent trial with ad-supported premium content with Google’s “Click to Play” advertising (the Viacom content will motivate the click that will show the ad). How this gets tied into AdSense/AdWords isn’t yet clear but it’s probably the same rules/terms for “Click to Play” ads. […]
August 11, 2006 at 8:19 pm
[…] This development marries Google Video’s recent trial with ad-supported premium content with Google’s “Click to Play” advertising (the Viacom content will motivate the click that will show the ad). How this gets tied into AdSense/AdWords isn’t yet clear but it’s probably the same rules/terms for “Click to Play” ads. […]
February 19, 2007 at 6:54 pm
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