YouTube Explores Video-Ad Pairings

YouTube is expected to launch a form of advertising on some of its video clips today, employing a user-controlled method that is gaining ground as marketers and Web sites look for ways to make money while keeping viewers engaged.

The model is similar to one already in use by television networks, which show ads that appear briefly in the corner of the screen during programs. About 15 seconds into a video clip, a semi-transparent image appears on the bottom of the YouTube screen, inviting viewers to click on it for more information. If the viewers don't react within 10 seconds, the image disappears.

YouTube said it is trying to create advertisements that are unobtrusive and relevant to the content of the videos.

The interest in online-video advertising is maturing as companies shy away from the unpopular "pre-roll" ads, which show an entire ad before the video clip, according to eMarketer, a research firm in New York. With more people watching video online, there is greater experimentation with ad formats.

"There is still a lot of resistance to pre-roll" by viewers, said David Hallerman, a senior analyst with eMarketer. Because many videos on the Internet are only one or two minutes long, viewers have little patience for watching a 30-second ad before they start, he said.

Recognizing that, YouTube's approach still gets the message in front of viewers for about 10 seconds. When a user clicks on the ad, the main video freezes as the ad takes over the screen.

"Over time, we'll see a lot of creative ways that marketing folks will find to interact with the users," said YouTube Group Product Manager Shashi Seth. Google, the leader in search engine ads, bought YouTube last year for $1.65 billion.

In one example, an ad for the film "Hairspray" runs alongside a hairstyling how-to video clip. When viewers click on the ad, a two-minute preview takes over the screen.

This type of ad, similar to ticker-like messages, can be effective, Hallerman said. "Even if the individual doesn't click, some of the message gets across but doesn't interfere with watching the video."

Molly Glover Gallatin, director of marketing for YuMe, a video distribution and advertising firm in Redwood City, Calif., said video advertising is in an experimental stage in which publishers and advertisers are trying many approaches.

"The kind of position that YuMe is taking is that we don't know yet what the killer ad product is going to be within video," she said. "It's going to probably vary depending on the length of the video and the type of content."

Advertisers are eager for an online video presence, and they are seeking the best way to put their brands out there, she said.

Most of the YouTube content matched with advertising will be professionally produced content that is part of the company's partnership network. Ads generally will not run with amateur videos.