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.
- 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.
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%