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May 24, 2007

Today, Google is beginning in-stream video ad testing with a small group of American publishers and Internet advertisers using its AdSense PPC system.

Google's new trial explores the best methods of matching video-enabled advertising with Internet video content for each publisher.

Overall, participating Web sites within the network will test using each publisher's Flash player, instead of YouTube or Google Video-hosted executions, according to Google.

Ad creative will be less than thirty seconds and made skippable for users.

Publishers will be able to select which videos to monetize, and track their performance using AdSense.

Publishers will also be able to select where the ads will appear within the videos. Akin to standard AdSense deals, ad revenue will be split between the website publisher and Google.

According to BrightRoll CEO and founder Tod Sacerdoti, Google declined to give any further details, but the expected move of adding in-stream video ads to its AdSense system can only help them to validate the use of video ad-serving systems.

By continuing to move into video ad serving, Google puts itself in competition with video ad companies such as BrightRoll, Tremor and Lightning Cast, which was acquired by AOL in 2006.

Sacerdoti added "anytime you have a major player entering the ad space it tends to validate it for everyone in the field already. In general, Google has taken the approach of targeting contextually the delivery of ads based on content and video."

"My assumption about the test is its going to be targeted like the click-to-play video ads that appear on sites with video. Google, like everybody else, is trying to figure out the right and scaleable way to address the problem of what works in this advertising space," said Sacerdoti.

Despite Google's large size, assets and very successful track record using AdSense, Sacerdoti believes the company may still have difficult issues to overcome with its in-stream video test, including the lack of standards with video players.

Sacerdoti was quick to add that current Google AdSense customers will see the greatest benefits from the test.

He said "they tend to thrive in the environment when they have 100 percent control of how the ads are delivered, and they tend not to thrive in environments where there is a lack of standards. To me the simplest answer is if buying AdSense advertising was effective to your brand before, then this is a good product to pay attention to."

Sacerdoti added "if buying AdSense hasn't been relevant to your brand then the video won't be either."

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Source: WBM News