Google Announces YouTube Sponsored Videos

- November 26, 2008

Google announced earlier this month that YouTube Sponsored Videos would be their new advertising program. We have heard the talk of Google expanding its reach and its “drill baby, drill” efforts. This announcement is just another example of how Google is introducing more ads on its properties, and in the process gaining more of our advertising dollars.

YouTube Sponsored Videos will allow users to surface their videos on YouTube, the third most visited website on the internet. You can create your video, choose keywords, enter your budget and maximum cost per click, write an ad and then pick your video to be served on YouTube. You can even use your Google Adwords for billing. Best of all, there is no minimum spending requirement and you will only be charged on a CPC basis.

Now, most of you are asking yourselves, “Why should I pay for a YouTube video when I can upload them for free”? There are several reasons why paying to have your video displayed on YouTube is a good idea. The most obvious reason is that by having a sponsored link, your video will be more visible and easier to find. According to The Official Google Blog, these are 13 hours of video uploaded to YouTube every minute and it can be difficult to ensure your video will be seen.

Many advertisers are already experimenting with YouTube Sponsored Videos and are taking advantage of the prime real estate being offered at low costs due to limited competition. Others are still hesitant to pay for something they can get for free. Well, if you are a current Google Adwords advertiser you are probably are doing just that. You do not have to pay to be on Google’s natural or organic searches, but you still pay to have sponsored listings. According to, competitive mix allows advertisers additional visibility when surrounded by competitors. In other words, everyone wants their name to be more prominently displayed than their competition.

If you decide to give YouTube Sponsored Videos a try, don’t forget that your video needs to have a strong call to action and a reason to follow through with that call to action. For example, at the end of your video, you might invite viewers to visit your website for a free download, more information or percentage off purchase.

With nearly 63 million US-based visitors in October 2008, there is no doubt that YouTube is the frontrunner in online video. Until now, advertisers have chosen from banners, rich media and in-video formats priced on a CPM-basis. With the roll out of YouTube Sponsored Videos, advertisers can benefit from most of the things we, as Google Adwords users love; CPC-based pricing, targeting capabilities, and of course more visibility.

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