Jun 23, 2006 (10:06 PM EDT)
Google Testing Ads For Video Service

Read the Original Article at InformationWeek

Google Inc. on Friday confirmed that it's testing an ad program for its video service.

Under the limited test, a small number of creators of Google Video's premium content are running streaming ads at the end of videos. In addition, text advertising and the advertiser's logo are shown above the video player. Clicking on either takes the viewer to the advertiser's Web site.

Premium content is normally available for a fee. Content available under the pilot program are ad-supported. Amateur video would continue to be free of charge and ad-free, a company spokeswoman said.

Advertisers bid to sponsor individual videos. Winners get to run a 15- to 30-second advertisement. At the conclusion of the campaign, an advertiser would receive stats on its performance.

"We are always looking for ways to show targeted and engaging advertising to users and we think that Google Video is a natural extension of this ongoing effort," the spokeswoman said in an email.

Google, based in Mountain View, Calif., draws a major portion of its revenue from advertising tied to its popular search engine.

But video is growing in popularity among advertisers as broadband use increases. More than half of the online population in the United States has watched video on the Web; and by 2010, 78 percent of the projected 88 million online U.S. households are expected to have high-speed connections, according to research firms.