Google Enters Video Ad Business

May 23, 2006  •  Post A Comment

Google has made its first move into the video advertising business with the extension of its AdSense online auction system to include video ads.

Those ads will play on partner Web sites as the company seeks to apply to video the model that’s worked well for text ads. For now, the video ads will not play on Google or Google Video, but the company previously has said it is exploring how to leverage its strength in search advertising with its Google Video service so the clips can be paired with relevant ads.

Google’s foray into video ads is another feather in the cap for the burgeoning field of online video and a further threat to the television advertising business that has seen marketers turn to the Web for greater accountability, measurement and engagement. It’s widely expected the company will move even further into brokering ads in online video and eventually TV.

Google said in a Monday announcement the video ads will be user-initiated, meaning users will click on the ad to make it play. Google said that approach will lead to more engagement. The so-called “click-to-play” ads can be targeted contextually or to specific sites and will be priced per impression or per click.