February 21, 2008

AdSense For Video Comes Out of Private Beta. Can We Kill the Pre-Roll Now?

Erick Schonfeld

22 comments »

google-adsense.pngNine months after launching its closed beta of AdSense for video, Google is finally opening up the advertising program to any publisher in the U.S. that serves one million or more video streams per month. (Perhaps the volume requirement is a concession to advertisers who want their ads shown only on mainstream sites—and porn sites need not apply, no matter how many videos they stream).

The ads come in two formats: video and text. Both appear as banners along the bottom of the video. When you click on the “InVideo” ad (isn’t AdBrite already using that name?), the video you are watching stops and a new smaller window opens up that plays a video commercial (you can close it at anytime to resume the original video you were watching). The text ad is also a banner with a regular contextual AdSense ad triggered by tags in the video or words on the page around it. When you click on that, it takes you to the advertiser’s Website. The InVideo ads are charged on a CPM (per-impression) basis, while the text ads are charged on a CPC (per click) basis. You can see demos here and in the two screen grabs below).

In addition to partner sites that are accepted into the AdSense video program, you also will be seeing these ads on YouTube videos, including those in the YouTube Partner program. And, as we’ve previously reported, these YouTube videos, with the accompanying ads, can be placed on any Website by publishers who don’t have videos of their own or would like to supplement what they have. In that scenario, the ad revenues get split three ways between the publisher site, the YouTube partner, and Google.

Thankfully, Google is staying away from pre-roll and post-roll video ads, the video ad format that still seems to dominate because it is most similar to what advertisers are used to buying on TV. Well, the Web is not TV. And Google realizes that. These formats are much less intrusive and more contextually relevant. Although overlays are nothing new (see VideoEgg, ScanScout, AdBrite, Blinkx, Cast.Tv, etc), Google’s heft in online advertising could easily make it the standard. I am still not a big fan of the text ads, though, because they send you away from the video in mid-stream, which does not provide the best viewing experience. But at least Google leaves it up to the viewers to decide for themselves whether or not they want to interrupt their videos by clicking on an ad. Anyway, either format is preferable to a pre-roll, which hopefully will now be taken out back and shot.

adsense-video-1.pngadsense-video-2.png

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  1. Brig Graff

    what about viddler.com? I like their hook with amazon.

  2. drew olanoff

    The big boys are going to keep pre-roll alive, they want the guarenteed impression.

  3. Technicle

    When you click on the “InVideo” ad (isn’t AdBrite already using that name?)…

    Well as you know, their name is Google and they do whatever they think fit.. just like their “OpenSocial” of Nov 2007, despite OpenSocial.com’s use since Mar 2005… and people didn’t seem to even want to try to call it either good or evil, in perhaps some wishful hope that Google will acquire them sometime down the road — maybe, or maybe not, but Google certainly can, if they want to (acquire) [said without regard to opensocial.com specifically, just generally speaking.] :-)

  4. tanaka

    You should check boo-box in video solution, i is quit different and has been around for almost 6 months now

  5. Steel

    Can we KILL everything GOOGLE ?

  6. Andy Gongea

    Hmm,

    So, the Google trend: MONETIZE everything. In this case the video market will loose - in its annual growth rate - but gain in revenues.

    The “spam” called advertising [video ads and Adsense], slowing down websites and maximizing the web sites loading time, will continue to multiply its presence in the web space.

    The crazy developers, addicted to open source and other freedom based ideas, will develop plugins and hacks to stop the spam on web pages.

    So, do I welcome ads in Youtube’s videos or Google video? No

  7. AC

    I can’t wait for the first reports of viruses being streamed this way. I give it about a month after it’s rolled out.

    Google’s AdSense will cripple the internet.

  8. fredvw

    Okay. Now if we can get Hulu and Joost on board, we might have something new for video-on-demand.

  9. Peter

    There’s a swedish start-up company that do this as well. Or something like that, check out videoplaza.se

  10. John Furrier

    Erik,
    I’m with you on the killing the preroll.. This is clearly a short term solution for Google. I’m not blown away by this product. They need to think differently because the user experiece sucks less than preroll but it still sucks.. why would I want to watch a 30 sec ad from HP - the ads need to be compelling and relevant.

    I posted a review from my perspective at..
    http://furrier.org/2008/02/21/.....nnovation/

    Glad to be commenting as part of the Techcrunch community :-)

  11. Corey Kronengold

    Pre-roll generates higher CPMs than overlays, so publishers with high quality content will rightfully stick with the format. Publishers do need to protect the user experience, though, and make sure it isn’t abused. Pre-roll fits perfectly in the value exchange with longer form, professional content. And it certainly beats paying for the content. Overlays could be terribly annoying in longer content because they’d constantly be popping up over your content.

    The pre-roll vs. overlay discussion isn’t a one-or-the-other issue. Each format has its positives and negatives. Using the right format for the right content with the right message will keep advertisers and users very happy, and with plenty of free video content to enjoy.

    Tremor Media is also a partner in the program, btw. The correct link to the Google Blog is http://googleblog.blogspot.com.....-beta.html

  12. ice

    Which type of ad publishing works best on website, or ad networks. Video or not video.

  13. Random Guy

    Do you guys know any site that offers pre-rolls? No matter what techcrunch thinks pre-rolls pay the bills because they are guranteed impression.

  14. rubu

    The “spam” called advertising [video ads and Adsense], slowing down websites and maximizing the web sites loading time, will continue to multiply its presence in the web space.

  15. Jack

    You’re missing two points here Erick:

    1.) Adsense struggles to monetise low bandwidth sites - it isn’t going to pay all those CDN bills for video sites, unlike pre-roll / mid-stream / etc

    2.) Whilst it’s nice to look down at pre-roll ads as too much like TV; as not ‘web 2′ enough, they work. TV works too, but pre-roll works better. There are hundreds of millions of dollars to move from TV to video advertising over the next few years, but adsense isn’t the answer. If you’re a typical brand focused advertiser trying to drive offline purchase, search isn’t where it’s at.

    We’ve sold millions of pounds of mid-stream advertising over the last 6 months because it delivers a better ROI than TV. We wouldn’t be around if we relied on adsense, and the continued flow of ad dollars from TV to online wouldn’t happen if it wasn’t for pre-roll and it’s like, which can actually increase brand equity.

  16. Random Person

    Techcrunch,

    Your Crunchbase profile on this page says Youtube was acquired for Cash.

    That is incorrect.

    It was acquired for Google stock.

  17. Ty Graham

    Blip’d already solved this problem.

  18. WizCoder

    having a video pop onto your video, thats weird

  19. Missed the real story

    The real story was missed by Eric the other day when scribd announced their new IPAPER as it has a hack that puts standard Adsense into Flash.

    http://thenextweb.org/2008/02/.....-possible/

  20. 3p141

    While AdSense has seen great success with its site-based text ads, I’m skeptical about the value media buyers will get out of Google’s new video service. In my view, the two services most likely to linger/gain momentum are pre-rolls and user-directed monetization. Services such as overlay.tv or viddler put a hypertextualized layer over shared video on which users can collaborate to share thoughts and monetized links. (Thankfully, the overlay can be turned off at will.) The way I see it, there is more of a future in user recommendation and product conversation than Google’s most highly targeted ad can provide.

    I’ve linked my handle to an example of the user-created variety.

  21. Mia

    i think if these apps are what you say they are, then user-directed, hand-picked placements and comments will always be of higher quality in terms of relevance. Of course you wont have the quantity that bot-picked placements have, but you get the quality, and ability to put in humourous and ironic links.

    Google algorithms just aren’t funny. Plus ppl love these social-shopping, product fav sites, right? Kinda the same thing?

    And the idea of a video inside a video, link in your first pic, that’s just fugly.

  22. Chris

    Do you think the size of the video will increase, to make up for the size of the ad? Or will we just get smaller videos?