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Google is expected today to introduce a service that will allow websites in its ad network to embed relevant videos from some YouTube content creators, effectively turning its advertising network into a system for distributing content, writes The New York Times.
The videos will include small text ads that will be overlaid on the bottom of the video player, giving Google - in its first major combination of a Google product with YouTube - a way to cash in on its YouTube purchase.
Google is sharing revenue from the ads with the video creators and the websites that include them. While many websites already include YouTube clips on their pages, they currently do not make any money from them. This system will allow websites to monetize the clips, though they will not have the same level of control over what clip gets embedded.
Advertisers can purchase inventory either on a CPC or CPM pricing model, according to Mediaweek.
Currently, about 100 media companies that have created YouTube videos will be participating.
Brightcove, another company that has been syndicating videos from media companies, has pointed out that there is an intrinsic challenge to adoption of the service. Medium to large companies and websites don’t want arbitrary content showing up, according to Brightcove’s chief executive Jeremy Allaire. “The sites that take it are typically very small sites with limited traffic,” which means the system brings in only modest revenue, he says.
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