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Google Set To Launch User-Initiated PPC Video Ads

Written on
May 23rd 2006
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Later this week, Google will introduce pay-per-click video ads across its AdSense network. Appearing first as a static screenshot in a small box on screen, the videos will be entirely user-initiated.

Google is pitching the video space as a perfect way for smaller businesses to enter the online video channel, furnishing the ads on their own servers for an affordable rate and with a speedy turnaround. The company also believes larger advertisers will be interested in using the space to test new spots for upcoming traditional video buys.

“We are offering a very, very non-intrusive ad product,” Gokul Rajaram, product manager for Google AdSense, tells Reuters. “Only users who click on the ad see the video.”

This format may scare advertisers who are acclimated with the current standard model of preroll, midroll and postroll ads embedded within content. However, Google believes its videos will afford advertisers a unique measurability on the interaction they are able to produce. “It is very good for advertisers because they now know the user is engaged,” Rajaram said.

Compared to most video ad servers, who charge around $20 per thousand user interactions, Google will reportedly offer the space for single- to low double-digits per thousand clicks.

No video ads will appear on Google’s own pages anytime soon. The user-initiated videos will run on the thousands of pages in its AdSense network, which currently make up for about half of the company’s total revenue.



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