In a new attempt to turn a profit on its flagship video product, Google has started tacking post-roll video ads onto the end of YouTube videos. These video commercials only appear on sponsored content and run any time users don’t click on an overlay ad.
The majority of the content on YouTube is still free of ads, with an estimated four percent of the content being provided as sponsored video with revenue share agreements. These videos are already displaying overlay ads that pop over the bottom of the video.
If a user watches the video and does not click on the overlay ad, a post-roll video commercial will begin immediately after the video ends. Some viewers are frustrated that Google would do so as a punishment for not clicking on the overlay ad.
Google has been looking for a way to monetize YouTube traffic since it acquired the startup two years ago. After shying away from pre- and post-roll ads because of their intrusiveness last year, Google started using small overlay ads that appear at the bottom of certain videos.
The largest video Web site in the world had initially shunned video ads after finding that 75% of users were unhappy with them. However, Google has reversed their stance somewhat in an attempt to turn a profit on YouTube.
It’s important to note that YouTube only places ads onto videos from their premium content providers. These companies have a revenue share agreement in place with the video site and provide content such as trailers or other video clips.
This content represents a paltry small portion of the videos uploaded to YouTube on a daily basis. Users might wonder how long it will be until Google begins running ads over their video content on YouTube. It will be interesting to see whether Google extends the revenue share offering to individual content producers as well.