Google Aims For More Video Ad Dominance With New DoubleClick Tool


Google (NSDQ: GOOG) is fully releasing its DoubleClick for Publishers Video ad serving tools after a year of beta testing, as the company looks to accelerate its growing share of display advertising. In particular, small business is considered an untapped market for local video advertising and Google is not only trying to entice those marketers with easy ad serving tools, it’s also offering a set of free tools to attract smaller sites and the incremental revenue that comes with them.

Free is pretty essential to some sites, since video hosting can be pretty expensive. But not for Google. So to unlock to those local video ad dollars, Google is partnering with video ad networks Brightcove and LongTail to provide video player and content management system connections with DFP Small Business, said Payam Shodjai, product manager for DFP, in an interview with paidContent.

The video ad serving is free up to a certain volume of impressions — Google didn’t specify — and after a certain level has been reached, Google says that Brightcove and LongTail have agreed to keep rates at a low monthly fee.

For the larger entitles, Google is promising a lot less complexity when it comes to video ad serving. Most advertisers and agencies complain at having to conform to different specs and standards when doing video ads. In essence, the DFP Video also represents the value of owning YouTube, as the video site’s massive infrastructure will manage the hosting and transcoding of the creative spots. It all goes to why Google has been so successful: by doing the heavy-lifting for advertisers and publishers, it’s hard to resist the lure. And with more usage from buyers and sellers, and its ability to embrace all other systems, Google could become the de facto standard for video ad serving.

Google says that the new offering will let publishers manage their entire display advertising business with video at its core through one platform. “Publishers won’t have to split off their video inventory into a separate ad server,” Shodjai said. “We’ve signed up dozens of beta publishers for DFP Video and our impression volume has grown 55 percent month-over-month for most of this year.”

Shodjai didn’t say how much revenue that volume growth has translated to. Again, given the size and scope of the beta test, it probably was a drop in the bucket for Google, whose display business was at a $2.5 billion run rate as of Q3 last year.

The big question will come as to whether Google’s partners will be able to drive enough incremental revenue to support the kind of premium inventor that most marketers say is lacking when it comes to video. Google’s extensive measurement tools will be able to answer that very quickly. In either case, the ease and low cost will surely be attractive to media companies these days as video ad sales surge from nearly $2 billion this year billion to $5.71 billion by 2015, according to eMarketer figures. More details in Google’s blog post.

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