International: YouTube's Monetization Plan: Overlay Ads That Aren't 'Intrusive'

Viewers Decide Whether They Want to Click on Messaging to See Longer-Form Spot

e4m by exchange4media Staff
Published: Aug 23, 2007 9:44 AM  | 5 min read
International: YouTube's Monetization Plan: Overlay Ads That Aren't 'Intrusive'

NEW YORK (AdAge.com) -- It's been almost a year since Google's $1.6 billion purchase of YouTube, and what's the killer ad model it's introduced? It's a simple flash-based ad overlay that appears across the lower 20% of the screen shortly after a YouTube video launches. It stays for about 10 seconds and, if a viewer doesn't choose to click on it and enable a longer-form video ad, it goes away.

Even though tests have been running on YouTube for more than a month, Google brass is just now talking about the ad format that it's rolling out in videos on the site. It has tested the ads with movie advertisers such as New Line Cinema and Weinstein Co., along with automaker BMW.

Less viewer abandonment
YouTube executives said they went with a smaller overlay because they believed it would be less intrusive. The new format lets viewers decide whether they want to see the longer-form ad, rather than forcing it upon them, said Shiva Rajaraman, YouTube product manager. Should a user choose to click through to a video ad, the content they were originally watching automatically pauses. He said that the company's tests found viewer "abandonment [of the video] is much higher, greater than 50% in some cases, with typical pre-roll."

According to Google executives, early test results indicate less than 10% of users close the overlays. They also said click-through rates are five to 10 times a typical standard display ad (meaning the ads on YouTube are getting a click-through rate of 2.5% to 5%). Three-quarters of those who clicked on an overlay watched the ad.

Overall, test clients appeared satisfied. Rinku Mahbubani, interactive media supervisor at GSD&M, Austin, Texas, who coordinated BMW's involvement in the test, said she was intrigued by how the ads didn't interrupt the viewer and were interactive. BMW is running ads that link to either a 30-second spot or a branded-entertainment video called "Relearn to Drive," testing the two against each other to see what kind of video ad works best in the environment.

'Fewer limitations'
"There are fewer creative limitations because it's not limited to 15- or 30-second pre-roll," she said. "The consumer has the opportunity to decide how much time they want to spend with your brand."

Erin Foxworthy at Palisades Media, which bought ads for Weinstein Co., said she appreciated that the test allowed her to target by specific piece of content, which she often isn't able to do when it comes to online video. She hopes, in fact, that when YouTube rolls out the formats more widely, targeting will get more precise.

YouTube is the most-visited video site on the web (according to comScore Video Metrix, YouTube had 66.3 million unique visitors in June), but it is not the first online media seller to test flash overlay formats: VideoEgg sells advertising in video and on page in 14 of the top 20 social networks, Brightcove has offered up a similar ad format and Ripe TV has experimented with several different kinds of flash overlays. This week fledgling video ad network YuMe introduced a series of flash overlay ads.

But even though YouTube's roots are as a video-sharing site where people can post footage of cats flushing toilets and little cousin Nicky's birthday party, that bastion of one-off user-generated content isn't what is being monetized under the new system.

Focus on professional content
Indeed, much of the content that is monetized is professional or semi-professional content: videos from Warner Music Group and how-to footage produced by Ford Models TV. Ads will also run on user-generated content from those enrolled in YouTube's partner program, which requires partners to create good serial content and abide by copyright rules.

"This solution isn't necessarily intended for all YouTube videos but on a select group of partner sites," said Eileen Naughton, who in a new elevated role as director-media platforms at Google oversees the search giant's sales of, well, nonsearch media.

When asked if this was the first sign of YouTube's evolution away from a pure video-sharing site and into an aggregator of more professional or higher-quality content, Mr. Rajaraman played that notion down.

"I wouldn't say the site is necessarily evolving in the sense of leading toward these monetizing partners directly, but users will get an opportunity by joining partner programs to be rewarded like any other content provider," he said. "We'll expand that program over time. There's always a home for user-generated content on YouTube."

However, it's hard not to wonder what YouTube becomes as the professional and high-quality content begins to drive the site's revenue.

'Mid-tail' content
John Caplan, chief operating officer at Ford Models, calls YouTube "a great partner" but suggests that the next inning of the site's evolution could see it sorting so-called "mid-tail" content from the Long Tail videos. Everyday Joe's videos, he said, aren't necessarily predictive content whereas "Ford has a regular schedule of content going live every day."

The media buyers agree. "It's a safer strategy to stay within professional video because you know what you're advertising on," said Ms. Foxworthy. "They have the inventory."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
Test

With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
test

Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
Test

e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
test

Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
khugfu

KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m