Nevermind the millions of dollars invested by venture capitalists in the online video advertising companies. Google, the company that gave a bottom line to online video when it bought YouTube for $1.6 billion, thinks the business of online video advertising is a work in progress.
“We are still in the process of trying different things,” Susan Wojcicki, Google’s vice president of product management told a small gathering of journalists at company’s corporate headquarers in Mountain View, California on Tuesday.
It’s not clear pre-roll (before the clip) or post-roll (after the video clip) ads will work online. Google says it is experimenting with in-stream ads for now, but looking for new ideas.
The company is currently looking at different overlays or ways to put ads at the bottom of the video, banners around video, or or even simply opting for ads that are companion banners to the video clips, Wojcicki noted.
“There is going to be a lot of experimentation. We shall see how and where the market evolves to,” she said. Video creators are content owners looking for new ways to make money — clearly there is a need for an effective online video advertisng strategies. “The challenge is to make the ads useful, targeted.”
She pointed out that there is a good chance that video advertising will become more integrated with the content. Did someone say product placement! When I asked her if she thought longer-form video was going to help overcome some of the issues with online video advertising, she said that for now it is the short-form content is what people want to watch. Which means, from an online advertising perspective, we are back to square one.