Google (GOOG) is working on enhancing their direct-response ad strategies, to working with larger media companies on branding opportunities.
They are working hard at getting large media companies with a lot of content to syndicate their video content on other Web sites.
Similar to the text ads, the videos appear inside a Google ad box that will be relevant to the surrounding content of the Web site. At this time they run ads either in the middle of clips or at the end of them. Revenue is shared between Google, the Web site and the content provider.
“Once upon a time, if you had some video content that you wanted to distribute, you could do it on three television stations in the days of the networks, then 100 in the days of cable,” said Kim Malone, director of online sales and operations for Google AdSense. “Now, thanks to this program, you can do it on literally millions of channels on the Internet.”
As I said, there is nothing complicated here. Companies still spend the bulk of the braning advertising dollars on television. Google wants a bigger piece of that huge market by targeting the growing video online market.
The major challenge for Google will be to persuade media companies that there will be added value to the mix by not only bringing increased online visibility, but also working in such a way to drive traffic to the site of the company they're syndicating the content for. The companies want to be able to sell ads on their own sites as well, as part of their strategy.
Google has grown probably as far as they can with the smaller direct-response advertisers which are usually presented through text ads, now their area of growth online will be the much larger and lucrative market of branded advertising. If they gain traction here, it will make their former success look small by comparison.
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