3 Comments

Summary:

Expect those yellow teeth ads to pop up on top of your YouTube videos any day now, as Google has added an option to build display ad overlays within its Display Ad Builder, making it possible for AdWords customers to easily generate and run overlays that […]

Expect those yellow teeth ads to pop up on top of your YouTube videos any day now, as Google has added an option to build display ad overlays within its Display Ad Builder, making it possible for AdWords customers to easily generate and run overlays that make use of their own imagery.

YouTube has been running ad overlays for close to three years now, calling them “one of the most effective ad formats.” However, generating those ads was previously fairly complex, and even many large advertisers have so far opted for text overlays instead of display ads. The new self-serve ad generator could lead to a huge number of display ads finding their way to YouTube, but also significantly increase monetization for the site, which could make as much as $1 billion in 2011, according to a recent Citigroup estimate.

AdWords customers can use Google’s Display Ad Builder to upload graphics sized 480×70 and then book these banners for regions, categories or even a specific video. Display overlays can be booked either on a cost-per-click or CPM basis.

The move towards self-serve advertising on YouTube doesn’t come as a total surprise: GoRumors uncovered a patent application for such a feature in January. In that application, Google wrote:

“The conventional techniques for development of such multimedia advertisements are complex, requiring resources beyond the means of many small to medium-sized organizations.”

The new ad generator, on the other hand, is squarely targeted at small advertisers. YouTube’s blog post announcing the new self-serve option specifically mentions small businesses as its target audience, musing that this would be a great way for a small beauty products outlet to “create an overlay ad and then run it on popular fashion and beauty videos.”

Related content on GigaOM Pro:

Why 2010 Still Won’t Be the Year of Mobile Advertising (subscription required)

You’re subscribed! If you like, you can update your settings

  1. YouTube Users Upload 24 Hours of Video Every Minute Wednesday, March 17, 2010

    [...] has been stepping up its efforts to monetize its vast amount of content; the site announced yesterday that it was opening up display ad overlays to everyone, which should lead to many more advertisers [...]

  2. More Details About YouTube’s Relaunch Wednesday, March 31, 2010

    [...] has in recent months made some serious efforts to monetize its site, most recently introducing self-serve advertising for banner overlays. Today’s changes show that the site hasn’t forgotten about growing [...]

  3. Display Ads a Big Hit for YouTube Monday, May 3, 2010

    [...] increasing its monetization. It launched display ad units on its mobile site in March. The site also recently unveiled a self-serve display ad overlay builder that allows small advertisers to build ad overlays for YouTube videos. Citigroup estimated two [...]

Comments have been disabled for this post