GOOGLE IS MORE than YouTube but it's in video and mobile that Google will reach a new revenue line. From the looks of Adsense for Video, Google's "InVideo" will deliver results. The advertisements appear as a banner at the bottom of videos. When clicked, they open a new window and play a video ad. You need to be running a video online that streams at least one million times every month in order to participate in this revenue play. Because the video spots are highly targeted and tailored to content, they purportedly generate CPMs of up to $15.
Initial publishing partners include ad networks Tremor Media, YuMe, Blip.tv, Revver, My Damn Channel, PinkBike and Howcast.
Comcast reports that Google's YouTube accounted for 32.6% of a total of 10 billion video streams served in December 2007.
On a related note, Peter Brantley highlighted comments by David Moore, CEO of search ad firm 24/7 Real Media. Moore hammered home a point for Tim O'Reilly concerning the internet's share of global ad dollars vs. share of viewing time: there's a lot of upside still in online advertising. As Moore says, "The fact of the matter is the Internet has been either dramatically underpriced or offline media is dramatically overpriced. Right now a reader of the Wall Street Journal might be worth a dollar, but for someone reading the online Journal you get a nickel. That's 20 to 1 offline versus online pricing. You need 20 online readers to replace one offline reader. So when you talk a bout pricing overall I think the web is dramatically underpriced already."
Where is the money going? To newspapers and magazines--both get more than they deserve. Moore explains, "Newpapers and magazines are still getting roughly 30% of all advertising expenditures--yet if you look at their share of media usage, they've got between 7% and 9%."
Michael Learmouth, Alley Insider, 21 Feb 08 -- "Google's New Video Ads: $15 CPM"
Ryan Hayward, Google Adsense Blog, 21 Feb 08 -- "Fueling creativity in online video - with AdSense for video beta"
Tim O'Reilly -- "Online advertising undervalued?"
Michael Learmonth -- "Print's going to get hammered even more"
