Google: new video ads likely to hit big

The knock against Google is that its ad business is mostly text-based. Then again, it is a highly lucrative business – that others like Microsoft and Yahoo wish they could excel at.

However, Google realizes that, in order to continue its growth, the company needs to bring on board more mainstream advertisers. This means going away from text ads – and venturing into branding.

It's not an easy transition.  But this week, Google is making a big step in that direction. That is, in its AdSense program, there will now be video ads.

But there is an interesting twist. The ads will not play automatically; that is, the user must click on the ad.  Hence, it is "click and play" advertising.

I talked to Greg Sterling (who, by the way, got back to me at 11pm tonight), who is the founding principal of Sterling Market Intelligence, a consulting and research firm focused on online consumer and advertiser behavior.  His assessment so far:  "I haven't seen the ads in action so I can only comment in the abstract about the model. But it combines reach and performance-based targeting for video in ways that are going to be appealing to brand advertisers."

While Yahoo! certainly has had much more experience in branding ads, the company may be a bit too traditional in its approaches. Here, in the case of Google, it is offering a unique method to video advertising.  And it is leveraging its incredible AdSense technology that has already proven to be quite successful.

Links:

My interview with Greg Sterling

Greg Sterling – Blog Post