Search Engine Land reports that YouTube is now selling semi-transparent animated flash “overlay” ads on select videos.
While pre-roll ads have been a common online video advertising method, research from Google indicated that such ads result in high rates of abandonment.
The way the ads work, at least in the live example I captured, is that they begin at the 15-second mark in a video. They are largely transparent and run for about ten seconds.
If the ad is clicked, the video being watched is automatically paused while a new video screen appears with the advertisement.
The video ad can be closed at any time by clicking an “x” at the top right of the ad. When this “x” is clicked, the ad disappears and the original video resumes.
According to a report by CNNMoney.com…
“YouTube has been testing the ads for several weeks with a handful of content partners, who receive a share of the revenue that’s similar to what Google gives partners in its keyword-based text advertising network, estimated at a sizable 70% to 80%. Advertisers will pay a flat rate of $20 per thousand consumer viewings.”
So it seems video publishers on YouTube can make in the neighborhood of a $14-$16 CPM if their videos are anointed as ad worthy.
That’s some exciting news for affiliates looking for ways to monetize video.