According to a story in The Guardian [registration required], Google (NASDAQ: GOOG) is testing ways of incorporating ads (and bringing in ad revenues) into YouTube videos. The head of Google's European operations, Patrick Walker, said that the company was testing the concept of offering people and companies that post videos half of the ad revenues, if they agree to allow a 30-second spot to run before the video. He said the company is looking for solutions that don't ruin the viewer's experience. IMHO, thirty seconds isn't much to tolerate for a half-hour show, but might be a major hurdle for a two-minute clip.
Howard Lindzon of Wallstrip earlier this week told Variety much the same thing, but suggested the program could be rolled out as early as next week. Apparently, Google has been testing the concept on their Google Video site.
Walker went on to say that Google expects the YouTube ad stream to start bringing in "real money" in 2008. He also expects that more professional content producers will be eager to post their product once a shared revenue stream is in place. Spanish, German, and English television networks have recently agreed to create branded YouTube promotional channels.
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