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Friday, June 23, 2006

Monetizing Google Video


Hey kids! Bored at the bus stop? Why not watch "Reality TV's hottest women" on your new Moto Q device?



Google Video is gaining momentum with more premium videos being added to the roster. Usability seems strong. It's easy to preview and buy (or buy a day pass to) the video of your choice. "Reality TV's Hottest Women" will set you back $4, or $2 for a day pass, for example.

No wonder Google needs Net Neutrality. How are they going to help you download stuff at the bus stop unless they can be your wireless Internet provider of choice, everywhere you might be?

So anyway, Google informs us that user-generated videos will continue to be free. And free is what most users are looking for... right? That's where sponsorship comes in. Google is currently running a test where a sponsor like Burger King can bid on a video sponsor slot. If they win, they receive the following:

- The ability to run a 15-30 second post-roll video ad
- Persistent branding while the video is playing through a text and icon above the video player
- A listing on the sponsored videos page

This is win-win-win. Users still get free content. Big sponsors find extra online places to put their ad inventory, since there isn't enough of it. And Google diversifies its revenue stream, monetizing video content in a revenue share deal with the owners of the content.

Just imagine the turnout at Adam Sandler's next movie if it was free admission, and all you had to do was watch a four-minute ad at the end and look at the sponsor's logo across the top of the screen. That'd be like a $12 savings! (But don't worry about the movie theatre -- they'll make it back in popcorn.)

Posted by Andrew Goodman




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