When Google acquired youtube in October last year they sent a clear signal that they were not happy with dominating text based online advertising alone. As of today the New York Times has reported that Google are now finally unveiling their first real strategy that involves heavy use of their investment youtube.
Google intends to offer video content to websites from youtube:
“We are creating incremental distribution for our content providers,” said Christian Oestlien, product manager for AdSense. Mr. Oestlien said the system would also allow publishers to make their Web sites more compelling and give advertisers a new way to reach customers.
While many Web sites already embed YouTube clips in their pages, this system would allow them to make money from the clips. They would not, however, have the same level of control over what clip gets embedded.
Source: New York Times
Rich media advertising has to date been no where near as cost effective as Google's wildly successful adwords. However, in the back of everyones mind was the realization that rich media could also be as targeted and cost effective as search engine advertising tactics like adwords.
Rich media advertising can indeed be as cost effective a tactic as adwords, so long as it is offered for sale on the same basis. In my opinion the responsibility for the success of adwords (from Googles perspective) lies equally, if not more, with the model on which they chose to sell the small text based ads, not just the advertisement management system itself.
Google are so smart.........
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