Google to pay agencies commission for video ads

The company says it will launch an ‘incentivisation programme’ to demonstrate Google’s commitment in developing video advertising opportunities.

The scheme, which has yet to have a launch date, Google bought YouTube for $1.65m in October 2006, but the video sharing site has so far failed to meet expectations for the search giant in terms of generating ad revenue.

Google will also launch a joint research project with agencies to ascertain how web users are consuming online video. It also plans to develop new ad formats in partnership with clients and ad agencies.

According to a Google spokesman: "We believe that online video specifically is going to be the next stage of evolution in the display marketplace.

Commenting on the move,  Tony Samios, Chief Operating Officer, Steak Group, said: “When it comes to online video conventional 30 second TV adverts are just not going to cut it. The viewer experience is different, even if the media format is similar.  Expect shorter ads, and ones that enhance user experience by introducing them to new products or other users with common likes or dislikes, to prove most successful.”

“Calculating the impact of video will be far more complex in comparison to current methods used for measuring other online advertising.  It’s easy to demonstrate and log when a digital display advert has been served but online video, on the other hand, is delivered in a linear format – i.e. it has a beginning, a middle and an end – so it’s difficult to register when a video has been watched in its entirety. If anyone has the ability to show how video can be monetised and the impact it has on consumer buying patterns, it’s Google,” Samios concluded.