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May 24, 2006
Google Click-to-play Video Ads

Google Inc. announced that it will distribute its pay-per-click video ads online but will not distribute them on its own website.

The Google video ads appear as static screen shots and are activated when a consumer clicks on the screen.

Click-to-play video ads will run on the AdWords auction model and can be targeted to specific sites or contextually. Both targeting models support a geographical targeting overlay, up to the city level. Pricing for click-to-play video ads can be either cost-per-impression or cost-per-click.

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

"Google's announcement today that they will offer video ads into their existing AdSense network is further recognition that for many categories and in many situations, consumers value a more compelling advertising experience than just text and static website information. The success of video ads will vary by category with some categories such as restaurants, spas and florists -- where a visual representation of the service or product can offer the consumer a more compelling reason to choose one provider over another -- benefiting the most. For other categories, the video might take the form of a personal message from the owner -- perhaps the roofing contractor -- who can make a more compelling case through the use of video than simply text. For yet other categories where price is the primary driver of choice -- selecting an auto insurance carrier for instance -- a video may do nothing to influence the consumers' decision," says Neal Polachek, senior vice president, The Kelsey Group.

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