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`First ads appear on YouTube clips | Media | MediaGuardian
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`8am
`First ads appear on YouTube clips
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`Mark Sweney
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`MediaGuardian, Wednesday 22 August 2007 07.01 EDT
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`YouTube: an animated overlay covering the bottom 20% of a video will appear 15 seconds after a clip starts
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`Millions of YouTube users will see adverts on the site's video clips for the first time today, as the company launches in-video advertising in an attempt to cash in on its massive popularity.
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`YouTube will use a new form of "transparent" advertisements that cover the bottom portion of its videos with a Flash-based overlay that runs while the clip is watched.
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`But users will be able to click on the adverts to make them disappear if they find them too intrusive.
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`The launch of the new advertising format represents a critical step for Google-owned YouTube, which needs to make money from its key video content while not driving away users with too many
`annoying ads.
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`"We tested and trialled a number of advertising formats," said YouTube's director of media and platforms, Eileen Naughton. "We needed to be respectful of the community while offering something rich
`and engaging as a marketing platform."
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`8/7/24, 1:45 PM
`First ads appear on YouTube clips | Media | MediaGuardian
`The "TV-style" animated overlay, which will cover the bottom 20% of a video, will appear after 15 seconds of a clip has played.
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`YouTube says that the overlay is "80% transparent" and will run for around 10 seconds.
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`Advertisers include Fox, The Simpsons Movie, BMW and Hairspray.
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`The company has opted for the new system, eschewing the more widely used advertising method of pre-rolls - running an advert before a video is viewed.
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`YouTube said that, initially, the new in-video format will only run on video content provided by a select range of partners and not on videos uploaded by individuals.
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`The company is aiming to make the in-video advertising available to around 1,000 partners - such as the videos run by Warner Music and Ford Models - and selected members of the public who are part
`of YouTube's partner programme.
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`The in-video ads can be targeted by genre, demographic, geography and day part.
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`Ms Naughton said that "at the moment" YouTube wanted to offer advertisers a "controlled environment" to run ads against.
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`She denied that there was any potential problems running ads around regular user-generated content due to ads running against copyrighted or inappropriate content - an issue that recently caused
`Facebook advertisers to pull campaigns.
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`"The YouTube community polices itself effectively," she said. She added that YouTube doesn't have a lot of "questionable" content.
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`The company claims that tests show that less than 10% of viewers actively move to close the overlay when it appears and that there is a five to 10 times "click-to-play rate" compared with standard
`advertising formats.
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`Users can watch an ad, click to close it, or click on it and either launch another window to watch a video ad - in such a case the YouTube clip pauses - or go to a third-party website.
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`"This is one format that works for the audience and is best for the community," said the YouTube group product manager, Shashi Seth.
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`He added that eye-tracking studies had shown that other types of ads did not work as well because users are focused on the clips - for example pre-rolls, he said, had a high abandonment rate.
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`Advertisers will pay per 1,000 overlays served to consumers.
`
`· To contact the MediaGuardian newsdesk email editor@mediaguardian.co.uk or phone 020 7239 9857. For all other inquiries please call the main Guardian switchboard on 020 7278 2332.
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