Google Video Adverts

Following the success of the pay per click advertising model, the race is on to use auction based, pay for performance models beyond text adverts, with Google recently announcing the introduction of video commercials online.

Google plans to provide video adverts through its AdSense content network initially (other websites which syndicate Google adverts), targeted to the content of the pages that the user is viewing. Payment is made when a user clicks to view the advert.

The major impacts of the PPC model have been its accessibility, ease-of-use, and its accountability meaning companies have been able get involved in ‘hands-on’ advertising like never before. This has put pressure on more traditional forms of advertising where it is much harder to gauge the return on investment. TV advertising, worth around $38 billion a year in the US alone has become the obvious target – traditional TV advertisers have only limited control over targeting.

If successful the mixture of targeting and accountability along with the visual impact and flexibility of video is sure to be a powerful tool for some advertisers. Products which can sell visually like property, hotels or any ‘physical’ products will be able to make more of an impact on its audience.

The vast amounts of revenue to be made from attracting more advertising dollars away from TV is not the only incentive for Google – this also helps to widen their portfolio of advertising channels suitable for high profile branding campaigns and small advertisers alike.

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