Google Automates The Creation Of YouTube Overlay Ads

Erick Schonfeld

Erick Schonfeld is a technology journalist and the executive producer of DEMO. He is also a partner at bMuse, a product incubator in New York City. Schonfeld is the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily... → Learn More

Tuesday, March 16th, 2010

In its relentless push to turn YouTube into a profit center, Google is trying anything it can to pump more advertising into the billions of videos people watch on the site. Now it is automating the way that Flash overlay ads can be created and displayed on YouTube videos. Through the self-serve Display Ad Builder in Google AdWords, mom-and-pop businesses can now create Flash overlay ads as easily as they can create display banner ads and place them in YouTube videos.

Overlay ads have been around for a long time on YouTube and other video networks. YouTube constantly refines the types of overlay ads it shows, but many of the small businesses which typically advertise on Google AdWords don’t have the tools to create Flash overlay ads. Now Google is providing them with templates, much like it does already for banner ads.

As of last October, YouTube was showing ads on more than one billion videos a week, which was roughly one in seven videos. YouTube wants to open up all of its video inventory to advertisers large and small. Today’s release is the latest move in that direction.

At what point will there be too many ads and will consumers ever backlash? Already I find those persistent pop-ups and overlays to get in the way of the videos I am trying to watch, and I don’t find them particularly relevant. Flooding YouTube with even more of these ads may be good for its bottom line, but viewers are not going to like them.

Company: YouTube
Website: youtube.com
Launch Date: February 2005
Funding: $11.5M

YouTube provides a platform for you to create, connect and discover the world’s videos. The company recently redesigned the site around its hundreds of millions of channels. Partners from major movie studios, record labels, web original creators, viral stars, and millions more all have channels on YouTube. YouTube is predominantly an ad-supported platform, but also offers rental options for a growing number of movie titles. YouTube was founded in 2005 by Chad Hurley, Steve Chen and Jawed Karim, who...

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Product: Google AdWords
Company Google

Google AdWords is an online advertising service. AdWords allows advertisers to purchase text, image, and rich-media ads, and the service offers pay-per-click and cost-per-thousand advertising. AdWords is Google’s primary source of revenue, bringing in $36.5 billion in 2011.

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