There will be a number of things the decision by YouTube to offer their video ads in flash overlays will have upon online marketers who monetize video.
Ian Schaeffer, writing for Clickz, asks the question if YouTube is using overlay ads, should we embrace the practice as well.
First, we need to know that many companies have already been doing this, such as VideoEgg, ScanScout and Break.com. So it's nothing new as a number of viewers are already acclimated to it.
That's the point I want to talk about here, as far as how the decision to use overlays by YouTube may affect us.
As far as online video goes, YouTube is a bellwhether. So decisions they make will have an impact on most of those monetizing video. It doesn't mean it is the only way to do it, but it will cause viewers to be socialized into a certain way of doing things.
In other words, video viewers will probably become more comforable and accepting of overlay ads because the biggest online video site in the world will be using that means of monetizing. That will have a big impact on the market in general.
What it will eventually do is demand companies to at least experiment with and use these types of ads in some way in their marketing mix.
The positive side is people will be accepting of these ads and won't flee the video just because they're being presented. The negative side it they may become so ubiquitous people simply ignore them.
At that time, either using a different ad format you know works, or using strategies within the format itself that sets you apart and grabs attention of the viewer will be needed to make a difference.
It's definitely time to be experimenting and trying different things. If you have user-generated content, this may be the best way to go, as others have been successful in their experiments over the last couple years.
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