Trend: Ads on search results pages will be more interesting with Google's latest move.
Jim Hedger describes Google's latest advertising enhancement and its implications. Will this solve the pay-per-click problem?
Link: The Revolution Will Be Televised, Details After These Ads by Google.
Google introduced a new age of advertising earlier this week by announcing plans to distribute video commercials on websites in its pay per click AdWords network. The move opens the once exclusive marketing channel of televised ads to a far wider array of small and medium businesses.
The sudden appearance of Google’s online video ad distribution service is going to have multiple repercussions for the $38 Billion US television advertising market. It is also going to present multiple opportunities for search marketers and their clients.
Starting today, Internet users in the US, Canada and Japan, will see an increasing number of click-to-play video boxes appearing amongst standard text-based AdWords ads on websites displaying Google generated advertising. An example video ad is posted on Google’s Inside AdWords Blog, appearing in a passive-play mode allowing viewers to click on it before it runs. Others have been spotted at, dictionary and translation site, WordReference.com, and on the front page of Blogthings.com.
According to Inside AdWords, “… video ads will compete for placement on sites in the Google content network with other text, Flash and image ads.” Advertisers will bid for placement of their video ads using the same cost-per-click (CPC or PPC) or cost-per-thousand impressions formulas used by competing AdWords advertisers.
The pay per click advertising model is widely credited as the primary factor behind the rapid growth and evolution of the business of search. Google makes over 9/10 of its money from paid search ads showing consistently higher revenues based on the strong growth of its various search advertising services.
A lot more money is about to move into the online medium. Even if the next six to twelve months are more a time of trial and testing, there is no way advertisers are going to resist creating their own video ads. The applications for advertisers are endless and suddenly very inexpensive. Search engine marketers, website owners and online advertisers should be preparing to deal with the video advertising market as it expands.
Google appears to be making it as easy as possible for smaller advertisers to upload video ads by allowing for any video format. Video ads are uploaded to Google servers where they are stored and served based on contextually similar content found on the sites displaying them.
Small to medium sized advertisers also have the ability to geographically target ads and to test different versions of their video ads. One of the greatest benefits of online advertising is the ability to track where every click came from and when, giving advertisers and marketing professionals a great deal of instant information about what does and does not work.
This is potentially the most disruptive move Google has made since the day it opened its doors. Paid search advertising will have a driving force in the migration of advertising money away from the traditional print and broadcast media. That migration, in turn, will cause enormous changes in the search marketing sector.
The sudden appearance of Google’s online video ad distribution service is going to have multiple repercussions for the $38 Billion US television advertising market. It is also going to present multiple opportunities for search marketers and their clients.
I like this idea. Some internet sites resemble more and more TV programs and not newspapers and magazines as before. So, google just helps them to move in this direction.
Posted by: Michael Hosting | June 22, 2006 at 08:04 PM
For those readers looking for an easy software tool to create, host and deliver Video Advertising, then take a look at the StreamerNet Mobile Video Producer.
The company has released the first “plug-and-play, click-and-stream” software program (WinXP) that lets you create your do-it-yourself sales commercial and upload it to your private StreamerNet video library. Simply place the provided link within web sites or AdBoxes and subsequent click-thrus will stream the video ad to the viewer.
More details at http://www.streamernet.com under Solutions
This product is a swiss-army knife which enables simplified creation and management of all things video, such as video email, live streaming, media conversion, podcasting and more.
Posted by: MrBill | July 03, 2006 at 04:41 PM