Google (NASDAQ: GOOG) will begin to sell ads that will run with videos on third party sites. The company wants to try to take advantage of the boom in online video using a targeting system similar to the one it has developed for text ads.
According to the FT, "Google's video ads will take one of two forms: banner ads, which will run at the top of the video screen, and 'overlay' ads, which will be inserted on top of videos as they play."
Sites with video will be able to sign up for the service the same way that they do for the Google Adsense text ad program.
The project has a lot of risk. Text ads appear off to the side of content and do not directly interfere with the user's experience at a website. Ads that "overlay" video insert themselves directly into the user's line of site, which could lead to people actually deciding they do not want to watch video with market messages. Viewership at some sites could then drop.
The new Google program may look good on paper, but the consequences of the project may make it unpopular with website operators.
Douglas A. McIntyre is an editor at 247wallst.com.
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