Google (GOOG) will begin to allow advertisers on its AdSense network to use selected YouTube videos in their marketing messages. This is a big jump from the simple little text ads that do so well next to search results. But, the video program may not do any better, and it could produce results that are not as good.
Google would like to find a way to make more money on YouTube. It did pay $1.6 billion for the property, but getting advertisers to spend a lot of money on the video sharing site has been tough. And, big media companies have been upset that their premium content is sometimes found on YouTube, posted without their permission.
So, Google’s new program will allow advertisers to take content from 100 video partners and run clips along with ad messages on the search company’s large ad network of websites and blogs, according to The New York Times. It seems like a good innovation.
The program has two potential problems. One is that the video quality of most YouTube content is pretty poor. How many marketers want to use crummy video in their ads? The other issue, the one that is more important, is the Google’s text ads do so well for marketers that more complex video ads may simply bomb.
Back to the drawing board.
Douglas A. McIntyre